The article "Samsung Stung by Apple Moves" related to the price cuts for the iPhone indicates that
A. The percentage change in the quantity demanded for the substitute cell phones was increasing less than the percentage change in the price.
B. The demand for the iPhone was inelastic.
C. The cross-price elasticity for iPhones and other cell phones produced by Samsung was negative.
D. Apple lowered the price for the iPhone because the cross-price elasticity between it and the other competitors was positive.
Answer: D
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If the equilibrium price for a two-liter bottle of Coca-Cola is $1.50 today, just like it was ten years ago, can we safely say that all supply and demand conditions in the market for Coke have remained very stable all these years?
What will be an ideal response?
When more firms enter an industry:
a. the industry supply curve will shift right. b. the amount produced by each of the new firms will be less than the amount produced by each of the original firms. c. the amount produced by each of the new firms will be greater than the amount produced by each of the original firms. d. the industry supply curve will shift left.