Positive technological change in the production of LCD televisions caused the price of LCD televisions to fall. Holding everything else constant, how would this affect the market for Blu-ray players (a complement to LCD televisions)?
A) The demand for Blu-ray players would increase and the equilibrium price of Blu-ray players would decrease.
B) The demand for Blu-ray players would decrease because consumers could afford to buy fewer LCD televisions and Blu-ray players.
C) The demand for Blu-ray players would increase and the equilibrium price of Blu-ray players would increase.
D) The supply of Blu-ray players would increase and the equilibrium price of Blu-ray players would decrease.
C
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A monopolist sets the price by matching which of the following?
a. The profit maximizing quantity to the price on the demand curve b. The price to marginal revenue c. The price to the average total cost curve d. The price to the marginal cost curve
The "efficiency of the payments mechanism" refers to
a. the ease and speed of exchanging money for goods and services. b. how fast member banks replenish required reserves. c. how fast banks pay interest on deposit accounts. d. how fast countries pay off foreign debts.
Which of the following will not cause an increase in aggregate output (Y) in the long run?
A) an increase in N B) an increase in K C) an increase in technology D) a reduction in the saving rate E) none of the above
Explain the three fundamental decisions that firms in perfectly competitive markets mustmake. Explain how these decisions are interrelated
What will be an ideal response?