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Suppose the Supply of Cellular Telephones Increases

Question 61

Multiple Choice

Suppose the supply of cellular telephones increases. We would expect:


A) both the equilibrium price and quantity of cellular telephones to increase.
B) both the equilibrium price and quantity of cellular telephones to decrease.
C) the equilibrium price of cellular telephones to decrease and the equilibrium quantity of cellular telephones to increase.
D) the equilibrium price of cellular telephones to increase and the equilibrium quantity of cellular telephones to decrease.

Correct Answer:

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