Technological advances have resulted in lower prices for high quality mobile phone cameras. What is the impact of this on the market for digital cameras?
A)The demand curve for digital cameras shifts to the right.
B)The supply curve for digital cameras shifts to the right.
C)The demand curve for digital cameras shifts to the left.
D)The supply curve for digital cameras shifts to the left.

Question

Quizplus · Accepted Answer

The lower prices of high quality mobile phone cameras mean that consumers have less incentive to purchase a separate digital camera, which decreases the demand for digital cameras. Therefore, the demand curve shifts to the left.

Technological Advances Have Resulted in Lower Prices for High Quality