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Market Equilibrium & Price Controls · Question 28 of 52

Question 28

MediumOriginal question

Better technology lowers the cost of making mobile phones. Other things the same, the market for phones sees

Options for question 28

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Lower costs increase supply: the supply curve shifts right.

  2. With demand unchanged, price falls and quantity rises.

Concept
Technology and the market
Typical time
70 s
Your time
—
The rule this testsWhen demand or supply shifts
Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.

Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.