However, in a market where the equilibrium price is $5 and the price floor is set at $4, there will be no effect on supply because the price floor must be set higher than the market price in order for it to have an effect on inventories.
In 1983, the portable CD player came as a boon for those who liked to listen to their choice of music while on the go.
There were soon six factories, and the price per disc dropped to $25, and then to $20. As venture capital poured in, there were soon 40 factories manufacturing discs. Hitachi also released their first CD players in 1982, selling about 6,000 units, whilst Sony sold over 20,000 CD players. In 1982, a mere 50 different music titles were available on the new format from CBS/Sony and Epic/Sony; these mostly included classical, jazz, rock, pop and karaoke.