Final answer:
The introduction of the iPod, a new and improved portable music device, likely caused a decrease in demand for Walkman CD players. As a result, this would lead to a decrease in both the equilibrium price and quantity of Walkman players in the market.
Step-by-step explanation:
As the demand for Walkman CD players declined, typically the price of Walkman CD players would decrease as well. This can be explained using a four-step process to analyze the market impact of a new product such as the iPod, which is a portable digital music player, on the equilibrium price and quantity of Sony Walkman, a classic portable audio cassette player.
Step 1: Identify the Change
The introduction of iPods represents a technological advancement and the availability of a new alternative in portable music players.
Step 2: Determine the Effect on Demand or Supply
As consumers prefer the new technology, the demand for Walkman CD players decreases.
Step 3: Determine the Effect on Equilibrium
This decrease in demand, assuming supply remains constant, would lead to a surplus of Walkman CD players at the original price, pressuring the price to fall until a new equilibrium is reached.
Step 4: Compare the New Equilibrium to the Old
The new equilibrium would feature a lower quantity and lower price for Walkman CD players compared to the old equilibrium, before the introduction of the iPod.