demand curve for smartwatches\nbreaking news\nan algorithm glitch causes the price of a new smartwatch to…

demand curve for smartwatches\nbreaking news\nan algorithm glitch causes the price of a new smartwatch to fall to $10.\nconsider the demand curve for smartwatches. what happens?

demand curve for smartwatches\nbreaking news\nan algorithm glitch causes the price of a new smartwatch to fall to $10.\nconsider the demand curve for smartwatches. what happens?

Answer

Brief Explanations:

According to the law of demand, when the price of a good (smart - watches in this case) decreases, ceteris paribus, the quantity demanded increases. A change in price leads to a movement along the demand curve. Since the price of smart - watches has fallen to $10 due to an algorithm glitch, there will be a movement downwards along the existing demand curve for smart - watches.

Answer:

There is a movement downwards along the demand curve for smart - watches as the quantity demanded increases due to the price decrease.