Question

The market for portable CD players is in​ long-run equilibrium. Then the demand for portable CD players decreases. Describe what happens in the market for portable CD players. As a​ result, firms will​ ______ the​ market, and the market supply curve will shift​ ______.

Answer 1

incur an economic loss; exit; leftward

Step-by-step explanation:

When the demand of a certain product decreased, it means that there will less amount of customers that the company could sell their product to. This will cause an economic loss for the company who produce that product.

So in response, the sellers will supply less of that product.

The supply curve will shifted to the right if supply increase and shifted to the left if supply decrease. So in this particular case, the supply curve for the CD will shifted to the left.