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.
The Sony CDP-101 CD player, circa 1982. Â©Sony (PR photo) Sony introduced the CDP-101, the first CD audio player to market, on October 1, 1982 at $900. As the first players surfaced on the market that year, the compact disc format began to attract widespread usage and popularity in Japan and Europe. Compact discs themselves were at first extremely expensive at $30 each.