Prices of smartphones (assume that this is a normal good) have fallen in recent years. Over this same period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen
Which of the following best explains the falling prices of smartphones?
A) The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left.
B) The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right.
C) The demand curve and the supply curve for smartphones have both shifted to the left.
D) The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right.
B
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After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?
A. Price will increase, and quantity will decrease. B. Price will decrease, and quantity will decrease. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will increase.
One type of explicit price-fixing is known as price leadership.
Answer the following statement true (T) or false (F)
A country’s trade deficit is the excess of its imports over its exports.
Answer the following statement true (T) or false (F)
Consumer surplus describes a situation in which there is excess quantity supplied.
Answer the following statement true (T) or false (F)