Multiple Choice
Suppose in the market for iPhones, the following two changes take place: (1) the cost of making iPhones rises, and (2) customers begin to prefer Android-platform smartphones over iPhones. What happens to equilibrium price and equilibrium quantity?
A) The equilibrium price and the equilibrium quantity fall.
B) The equilibrium price falls, but the equilibrium quantity is indeterminate.
C) The equilibrium price is indeterminate, but the equilibrium quantity falls.
D) The equilibrium price rises, but the equilibrium quantity is indeterminate.
Correct Answer:
Verified
Correct Answer:
Verified
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