Question

If a breakthrough in battery technology enables cell phone manufacturers to construct phones with the same battery life for less money, then in the cell phone market, equilibrium price______and equilibrium quantity______.

Answer 1

Answer:

decreases; increases.

Explanation:

Technology can be defined as a branch of knowledge which typically involves the process of applying, creating and managing practical or scientific knowledge to solve problems and improve human life. Technologies are applied to many fields in the world such as medicine, information technology, cybersecurity, engineering, environmental, etc.

Generally, technology has impacted the world significantly and positively as it has helped to automate processes, increased efficiency and level of output with little or no human effort.

Assuming a breakthrough in battery technology fosters the growth and development of cell phone manufacturers.

In the cell phone market, equilibrium price would decrease while there would be a significant increase in equilibrium quantity because they will be able to construct phones with the same battery life for a less amount of money.

Additionally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.