Select the phrase that correctly completes the following statement. "A decrease in the expected future price caused an increase in the supply of smartphones. As a result
A) the price of smartphones decreased and the demand for smartphones increased."
B) the equilibrium quantity of smartphones decreased."
C) the price of smartphones decreased and the quantity of smartphones demanded increased."
D) the price of smartphones decreased. The lower price caused the supply of smartphones to decrease."
Answer: C
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When the exchange rate depreciates in the short run and then appreciates to its original level in the long run, it implies that the domestic money supply has:
a. temporarily risen. b. permanently risen. c. temporarily fallen. d. permanently fallen.
Economists study
A) the choices people make, but not the consequences of their choices. B) the consequences of peoples' choices, but not the choices themselves. C) the choices people make in a world where resources are scarce. D) theories and ignore all the facts. E) data rather than people.