It Apple\'s iTunes Music Store increases its \"fee\" for its music downloads the

Question

It Apple's iTunes Music Store increases its "fee" for its music downloads the law of demand predicts that the number of iTunes music downloads would decrease. iTunes music supply would change but demand would not. the number of iTunes music downloads would increase. there would be no change in the demand tor iTunes music downloads. Goods X and Y are complementary goods. A decrease in price of good X has occurred. In the market tor good Y, this will lead to a decrease in price and an increase in quantity. an increase in price and an increase in quantity a decrease in price and a decrease in quantity an increase in price and a decrease in quantity. Other things being equal suppose that the demand for wheat in constant quality units increases. The increase in demand will cause a surplus of wheat. a higher equilibrium quantity. but a lower equilibrium price of wheat. fall m the market clearing price of com, a substitute for wheat. a higher equilibrium price and higher equilibrium quantity of wheat.

Explanation / Answer

A) Number of i tunes music download will decrease. According to Law of demand, price and quantity are inversely related. A) Decrease in price and increase in quantity. Complementary goods are used together. Decrease in price of 1 complementary good will increase quantity of both. D) A higher equilibrium price and higher equilibrium quantity. Increase in Demand will shfit Demand curve to right.

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