Question

As the supply of compact disc players has increased over the years and the price of compact disc players has dropped, the _____.

Answer 1

Answer:

The correct answer is option c.

Explanation:

An increase in the supply of compact disc players would cause the supply curve to shift to the right. This rightward shift in the supply curve would cause the price of compact discs to decline.

At lower prices, the consumers are consuming more of compact disc players. The quantity demanded of players has increased.

This is also evident through the given figure.