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Consider the MP3 market. Suppose that people's incomes are going to rise because they just got pay raises at their jobs and at the same

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Consider the MP3 market. Suppose that people's incomes are going to rise because they just got pay raises at their jobs and at the same time, improved technology drives the costs of memory chips for MP3 players lower. Now the demand curve for MP3 players shifts less than the shift in the supply curve for MP3 players. What do you think will happen to equilibrium price and equilibrium quantity of MP3 players as a result of this scenario? Equilibrium price rises and equilibrium quantity falls for MP3 players. Equilibrium price falls and equilibrium quantity falls for MP3 players. Equilibrium price falls and equilibrium quantity rises for MP3 players. Equilibrium price rises and equilibrium quantity rises for MP3 players

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