ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A decrease in the supply of smartphones
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an increase in the supply of smartphones
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a decrease in the demand for smartphones
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none of the above
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Detailed explanation-1: -In the market for cell phones, if the supply of cell phones increases, d. price will decrease and quantity will increase. The law of supply states that higher price leads to higher quantity supplied. If the supply of cell phones increases, the supply curve will shift in the rightward direction.
Detailed explanation-2: -Answer and Explanation: The answer is: b. a decrease in the price of inputs used to produce smartphones.
Detailed explanation-3: -What happens to the quantity of cell phones supplied and the supply of cell phones if the price of a cell phone falls? If the price of cell phones falls and nothing else changes, then the quantity of cell phones supplied will decrease and there is a movement down along the supply curve for cell phones.
Detailed explanation-4: -A change in supply can occur as a result of new technologies, such as more efficient or less expensive production processes, or a change in the number of competitors in the market. A change in supply is not to be confused with a change in the quantity supplied.