Multiple Choice
"The price of compact LED lights fell because of improvements in production technology.As a result, the demand for incandescent light bulbs decreased.This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incandescent light bulbs decreased even further." Evaluate this statement.
A) The statement is false.A decrease in the price of compact LED lights would decrease the demand for incandescent light bulbs, but a decrease in the price of incandescent light bulbs would not cause the demand for incandescent light bulbs to decrease.
B) The statement is false because the demand for incandescent light bulbs would increase as the price of compact LED lights fell.
C) The statement is false because compact LED lights producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits.
D) The statement is false because it confuses the law of demand with the law of supply.
Correct Answer:
Verified
Correct Answer:
Verified
Q27: If the number of firms producing mouthwash
Q201: If, for a product, the quantity supplied
Q259: Figure 3.7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 3.7
Q260: Several studies have shown promising links between
Q261: Figure 3.11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 3.11
Q263: Figure 3.9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3061/.jpg" alt="Figure 3.9
Q264: Auctions in recent years have resulted in
Q265: The demand for lobster is higher at
Q267: Select the phrase that correctly completes the
Q461: Let D = demand, S = supply,