Select the phrase that correctly completes the following statement."A positive change in technology caused an increase in the supply of flat-screen televisions.As a result ________."
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, which is consistent with option C. Option A is incorrect because an increase in supply would not cause an increase in demand, and option B is incorrect because an increase in supply would cause an increase in equilibrium quantity, not a decrease. Option D is incorrect because a decrease in price would increase the quantity supplied, not decrease it.

Select the Phrase That Correctly Completes the Following Statement