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ruslelena [56]
3 years ago
15

The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for

incandescent light bulbs decreased. This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incandescent light bulbs decreased even further. Evaluate this statement.
Business
1 answer:
elena-s [515]3 years ago
3 0

Answer:

The answer is:

This statement is false. Fluorescent light bulbs (FLB) and incandescent light bulbs (ILB) are substitute goods, so a decrease in the price of one of them (FLB) should increase the quantity demanded for that product (FLB) and decrease the quantity demanded of the other (ILB).

A decrease in the price of any product (including ILB) would never decrease its quantity demanded.

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Arturiano [62]

Answer:

The new entrant of UBER has led the taxi fares to drop by significant amount. The competition has increased and customers have now choice available to choose from lowest fares.

Explanation:

The taxi market is competitive industry but since there was no specific organization behind the taxi union which governs the taxi fares, the taxi drivers were free to charge the fare they want. The entry of UBER in the industry has enables the customers to switch from normal taxi to UBER as it provides ease of online booking with lowest possible standard fares.

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Answer:

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Answer:

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Answer:

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