The cost of sensors used in making digital cameras falls,while a successful ad campaign makes digital cameras more fashionable.As a result,the equilibrium price of digital cameras _____ and the equilibrium quantity _____.
A)increases;increases
B)increases;may increase,decrease,or stay the same
C)may increase,decrease,or stay the same;increases
D)decreases;increases

Question

Quizplus · Accepted Answer

The fall in sensor costs shifts the supply curve right, potentially lowering prices, while increased demand from the ad campaign shifts the demand curve right, increasing quantity. The price effect is uncertain as it depends on the magnitude of shifts.

The Cost of Sensors Used in Making Digital Cameras Falls,while