Question

If all else is held constant, what would happen to the equilibrium price and qu the price of an Android phone decreased? a. They would both increase b. They would both decrease. c. One would increase and one would decrease, but we don't know which wou what d. The price would increase and the quantity would decrease. e. The price would decrease and the quantity would increase

Answer 1

Answer:

option B is the correct answer..

Explanation:

• market for phones will decline; consequently the equilibrium price will decrease in the amount as well.

• The argument can be supported by the fact that perhaps the fall in production at the initial price would generate an excess supply.

• Prices will therefore fall; therefore suppliers will be prepared to supply fewer, thereby rising demand.