In 2000, the demand for audio CDs was increasing as more people purchased them to listen to during commute time. Later in the year the price of aluminium (a material used in CDs) decreased. In 2001 the iPod was launched. The new technology began shifting the market and downloading digital audio became a viable substitute for CDs. As digital technology has improved since 2001, downloading audio files continued to increase with the demand for CDs dropping. If you were drawing a supply and demand graph to illustrate the changes to the CD market between 2001 and 2011, what would you say has happened to the market and the equilibrium price and quantity of the CD market since 2001? Responses The demand curve shifted to the left, and the supply curve shifted to the right, the equilibrium price for CDs decreased from 2001 and it is impossible to determine the effect on the quantity. The demand curve shifted to the left, and the supply curve shifted to the right, the equilibrium price for CDs decreased from 2001 and it is impossible to determine the effect on the quantity. Supply and demand curves have shifted to the left and the equilibrium price