The figure shows the supply and demand for online music. Suppose that an economic downturn decreases household wealth and erodes consumer confidence. Move the supply and/or demand curves to reflect the primary effect this would have on the market for online music. You can assume that online music is a normal good. Also select the end result of equilibrium price and quantity. Equilibrium price Price ($ per track) Quantity (number of tracks) Supply Demand

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
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The figure shows the supply and demand for online music.
Suppose that an economic downturn decreases household
wealth and erodes consumer confidence. Move the supply
and/or demand curves to reflect the primary effect this would
have on the market for online music. You can assume that
online music is a normal good. Also select the end result of
equilibrium price and quantity.
Equilibrium price
Equilibrium quantity
Price ($ per track)
Quantity (number of tracks)
Supply
Demand
Transcribed Image Text:The figure shows the supply and demand for online music. Suppose that an economic downturn decreases household wealth and erodes consumer confidence. Move the supply and/or demand curves to reflect the primary effect this would have on the market for online music. You can assume that online music is a normal good. Also select the end result of equilibrium price and quantity. Equilibrium price Equilibrium quantity Price ($ per track) Quantity (number of tracks) Supply Demand
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