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. increases; rises b. decreases; rises c. increases; falls d. decreases; falls
Answer
Brief Explanations:
Wireless plans and smartphones are complements. 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 new equilibrium, the quantity of smartphones increases and the equilibrium price also increases.
Answer:
A. Increases, rises