The price of the Samsung Galaxy Tablet is falling. In a free-market economic system where everything else is equal, the most likely explanation is
A) there is a Galaxy Tablet shortage in the United States.
B) sellers cannot keep up with market demand.
C) the government determined that the product was not worth the price tag that the producer was asking.
D) the product has competition at the equilibrium price.

Question

Quizplus · Accepted Answer

If producers (sellers) are able to supply the amount of Samsung Galaxy Tablets needed at the market price, but in the short run, the price is falling, everything else being equal, the likely problem is added competition in the marketplace.

The Price of the Samsung Galaxy Tablet Is Falling