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Economic Theory States That More of a Good Is Supplied

Question 28

Multiple Choice

Economic theory states that more of a good is supplied at a higher price than a lower one,yet the sales of digital cameras have increased while their prices have fallen.This statement


A) reflects the fact that economics is not a precise science and its predictions are sometimes incorrect.
B) merely illustrates that the digital camera market may be an exception to the general rule.
C) applies only to the supply side and overlooks the tremendous increase in the demand for digital cameras.
D) confuses changes in the quantity supplied with changes in supply.
E) ignores the fact that the current price may be below the equilibrium level.

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