ples of Microeconomics (ECO-101-B-C) ightspaceContent Classlist Groups Grades Ac

Question

ples of Microeconomics (ECO-101-B-C) ightspaceContent Classlist Groups Grades ActivitiesCourse Admin LibraryVirt hapters 1 to 3 00 Time Left:0:4705 Christy Capps: Attempt 1 Note: It is recommended that you save your response as you complete each question s saved Question 1 (4 points) Suppose in the market for smartphones the following two changes take place: (1) the cost of making smartphones falls and (2) more consumers prefer smartphones over regular cell phones. What happens to the equilibrium price and the equilibrium quantity of smartphones when both of these changes occur simultaneously? The eauilibrium price falls, but the equilibrium quantity cannot be determined definitively The equilibrium price cannot be determined definitively but the equilibrium quantity rises. The equilibrium price and the equilibrium quantity rise. The equilibrium price rises, but the equilibrium quantity cannot be determined 12 definitively 15 tarted Question 2 (4 points) MacBook Air F2 FS F7 F8 F1O

Explanation / Answer

Second option is correct because when demand increases due to new consumers and supply increases due to fall in the cost of production, price increases and decreases so the effect on price is determined by the size of the shift. Quantity rises definitely

Select 2nd option.

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