What happens to the quantity of cell phones supplied and the supply of cell phones if the price of a cell phone falls?
What will be an ideal response?
If the price of cell phones falls and nothing else changes, then the quantity of cell phones supplied will decrease and there is a movement down along the supply curve for cell phones. The supply of cell phones, however, remains unchanged and the supply curve does not shift.
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Refer to Table 15.3. Based on the data in the table, the primary budget deficit necessary to make fiscal policy sustainable in Saldinia is ________ of GDP
A) -5.3% B) -1.1% C) 1.1% D) 6.5%
Movie theatres offer senior discounts because
a. Seniors have a more elastic demand for movie tickets b. Seniors have lower incomes c. Seniors have a lower opportunity cost of time d. All of the above
When Lionel, an orange grower, hires Terry, Terry's marginal physical product per hour is 9 bushels of oranges. The price is $5 per bushel and the hourly wage rate is $55 . We know then that
a. orange growing is a profitable business b. Terry creates a division of labor that adds not only output but profit for Lionel c. the labor market is not competitive because price and the wage rate are not the same d. Lionel should not have hired Terry e. Terry's marginal revenue product is greater than the wage rate
Mitt Romney argued in a debate with President Obama that the economy had grown more slowly in each year of the President's term than in the year prior to Obama's presidency. This claim is most related to the field of:
A. financial economics. B. macroeconomics. C. microeconomics. D. public policy.