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What happens to the supply curve for CD players when the price of computer chips used in CD players decreases?

A. It shifts upward.
B. It shifts to the right.
C. There is no change.
D. It shifts to the left.

1 Answer

3 votes

Final answer:

The supply curve for CD players shifts to the right when the price of computer chips decreases because it represents a decrease in production costs for manufacturers.

Step-by-step explanation:

When the price of computer chips used in CD players decreases, this represents a decrease in production costs for manufacturers of CD players. According to economic principles, when production costs decrease, suppliers are able to offer more of a good at every price point, which means that the supply curve shifts to the right. Therefore, the correct answer to what happens to the supply curve for CD players when the price of computer chips decreases is B. It shifts to the right.

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