Effect Invention Music Player Equilibrium Quantity Cd Players Bought Sold Price Cd Players Q34216735

What effect will the invention of a music player have on theequilibrium quantity of CD players bought and sold and on the priceof CD players? Why? (Hint: please be clear to show the effects onquantity bought and sold and also on the price of CD players. Use agraph).

Expert Answer

The invention of a music player will cause the demand curve tomove to the left i.e the demand for the CD players will fall downas the music player is a substitute for the CD player.

The equilibrium quantity will decrease from Q* to Q1.The priceof the CD players will also decrease from