Question 28
MediumOriginal questionBetter technology lowers the cost of making mobile phones. Other things the same, the market for phones sees
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Lower costs increase supply: the supply curve shifts right.
With demand unchanged, price falls and quantity rises.
- Concept
- Technology and the market
- Typical timeTypical
- 70 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Market Equilibrium & Price Controls, at your own pace.