Final answer:
The first MP3 player was launched in 1998, marking a pivotal moment in the evolution of portable audio technology. These devices utilized advanced microchip technology for storing and playing digital music files. The rise of MP3 players, such as the iPod, led to a decline in the market for older devices like the Sony Walkman.
Step-by-step explanation:
The first portable MP3 player was launched in 1998. This device represented a significant advancement in consumer technology, following the evolution of portable audio devices. Earlier, the Sony Walkman had revolutionized how people listened to music on the go when it was introduced in 1979.
MP3 players leverage microchip technology to store and play back music in a compressed digital format. The design of an MP3 player includes components like a digital-to-analog converter (DAC) to turn digital files into audible sound, a storage medium like flash memory (e.g. 8 MB, 16 MB), and a user interface to navigate the music library.
The introduction of digital music players like the iPod had a considerable impact on the demand and value of previous technologies like the Sony Walkman. Using a four-step process to analyze market conditions, we can see that the equilibrium price and quantity of portable cassette players would decrease as consumers shifted their preferences towards the newer MP3 technology.