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 price of smartphones decreased. The lower price caused the supply of smartphones to decrease."
C) the price of smartphones decreased and the quantity of smartphones demanded increased."
D) the equilibrium quantity of smartphones decreased."
C
You might also like to view...
Which of the following statements correctly uses the concept of opportunity cost in decision making?
I. "Because my secretary's time has already been paid for, my cost of taking on an additional project is lower than it otherwise would be." II. "Since NASA is running under budget this year, the cost of another space shuttle launch is lower than it otherwise would be." A) I is true, and II is false. B) I is false, and II is true. C) I and II are both true. D) I and II are both false.
The president of Tucker Motors says, "Lowering the price won't sell a single additional Tucker car." The president believes that the price elasticity of demand is:
a. perfectly elastic. b. perfectly inelastic. c. unitary elastic. d. elastic. e. inelastic.