Multiple Choice
"The price of digital cameras fell because of improvements in production technology.As a result,the demand for non-digital cameras decreased.This caused the price of non-digital cameras to fall; as the price of non-digital cameras fell the demand for non-digital cameras decreased even further." Evaluate this statement.
A) The statement is false because the demand for non-digital cameras would increase as the price of digital cameras fell.
B) The statement is false.A decrease in the price of digital cameras would decrease the demand for non-digital cameras,but a decrease in the price of non-digital cameras would not cause the demand for non-digital cameras to decrease.
C) The statement is false because it confuses the law of demand with the law of supply.
D) The statement is false because digital camera producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits.
Correct Answer:

Verified
Correct Answer:
Verified
Q163: Let D = demand,S = supply,P =
Q164: Figure 3-7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 3-7
Q165: Figure 3-7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 3-7
Q166: Figure 3-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 3-5
Q167: Table 3-1<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Table 3-1
Q169: If consumers believe the price of tablet
Q170: Using Richard Tedlow's "three phases of marketing,"
Q171: What are the five most important variables
Q172: Buyers scrambled to secure stocks of Australian
Q173: If,in response to a decrease in the