the price of a wireless plan falls. what is the effect on the price and quantity of smartphones? the…

the price of a wireless plan falls. what is the effect on the price and quantity of smartphones? the equilibrium quantity of smartphones ______ and the equilibrium price ______. a. decreases; rises b. increases; falls c. increases; rises d. decreases; falls

the price of a wireless plan falls. what is the effect on the price and quantity of smartphones? the equilibrium quantity of smartphones ______ and the equilibrium price ______. a. decreases; rises b. increases; falls c. increases; rises d. decreases; falls

Answer

Brief Explanations:

Wireless plans and smartphones are complementary goods. When the price of a wireless plan falls, the demand for smartphones increases. An increase in demand shifts the demand - curve to the right. In the market for smartphones, this leads to an increase in both the equilibrium quantity and the equilibrium price.

Answer:

C. increases; rises