A Theory Asserts That Manufacturers Are Less Willing to Sell

Multiple Choice

A theory asserts that manufacturers are less willing to sell units of output as the price of goods decreases. However, as the price of computers fell throughout the 1990s, more computers were sold. Which of the following explanations of the apparent conflict between theory and data is most accurate?

A) It is likely that variables other than the price and quantity of computers sold were changing.
B) The theory must be invalid.
C) The theory rests on assumptions that are too simplistic.
D) All variables other than the price and quantity of computers sold were unchanged.