what happens to the quantity of smartphones supplied and the supply of smartphones if the price of a…
what happens to the quantity of smartphones supplied and the supply of smartphones if the price of a smartphone falls?\ndraw a supply curve of smartphones. label it.\nuse any prices and quantities you wish but make your supply curve obey the law of supply.\nthen draw an arrow to indicate what happens to the quantity of smartphones supplied when the price of a smartphone falls.\na fall in the price of a smartphone ______ the quantity supplied and ______ supply.\na. decreases; does not change\nb. does not change; does not change\nc. does not change; decreases
Answer
Brief Explanations:
The law of supply states that, ceteris paribus, as the price of a good falls, the quantity supplied of that good decreases. A change in the price of a good leads to a movement along the supply - curve, which affects the quantity supplied. Supply itself is affected by non - price factors such as input prices, technology, etc. A fall in price of smartphones causes a movement down along the supply curve, reducing the quantity supplied, but does not change the supply curve (i.e., supply).
Answer:
A. decreases; does not change