Final answer:
The increase in the price of compact discs would not cause the demand curve for DVD players to shift. A shift occurs when there is a change in demand due to factors directly affecting the product in question. Complementary goods, such as compact discs and DVD players, would see a change in quantity demanded, but not a shift in the demand curve.
Step-by-step explanation:
The statement that an increase in the price of compact discs would shift the demand curve for DVD players to the left is false. Generally, the demand curve for a product shifts due to changes in factors such as consumer preferences, income levels, prices of related goods, and expectations. If compact discs and DVD players are considered complementary goods, an increase in the price of compact discs would likely decrease the demand for DVD players. However, this does not cause the demand curve for DVD players to shift; it would cause a movement along the demand curve indicating a lower quantity demanded at the current price. A shift in the demand curve for DVD players would occur if there were changes in factors directly related to DVD players themselves, not compact discs.
As an example of how demand shifts, consider a shift to digital news sources which causes a lower quantity demanded of traditional news sources at every given price. This results in a leftward shift of the demand curve for print and traditional news sources, from Do to D1, reflecting a negative effect on demand. The same principle can be applied to other industries and products.