If a positive change in technology caused an increase in the supply of flat-screen televisions, ________.
A)the price of flat-screen televisions decreased and the demand for flat-screen televisions increased
B)the equilibrium quantity of flat-screen televisions decreased
C)the price of flat-screen televisions decreased and the quantity demanded of flat-screen televisions increased
D)the price of flat-screen televisions decreased; the lower price caused the supply of flat-screen televisions to decrease

Question

Quizplus · Accepted Answer

An increase in supply would lead to a decrease in price and an increase in quantity demanded, so the correct answer is C. Option A is incorrect because an increase in supply would not cause the demand for flat-screen televisions to increase. Option B is incorrect because an increase in supply would cause the equilibrium quantity to increase, not decrease. Option D is incorrect because a decrease in price would cause an increase in demand, not a decrease in supply.

If a Positive Change in Technology Caused an Increase in the Supply