If all else is held constant,what would happen to the equilibrium price and quantity of iPhones if the price of an Android phone decreased?
A) They would both increase.
B) They would both decrease.
C) One would increase and one would decrease,but we don't know which would do what.
D) The price would increase and the quantity would decrease.
E) The price would decrease and the quantity would increase.

Question

Quizplus · Accepted Answer

A decrease in the price of Android phones, which are substitutes for iPhones, would lead to a decrease in the demand for iPhones. This would result in a lower equilibrium price and quantity for iPhones as consumers switch to the more affordable Android options.

If All Else Is Held Constant,what Would Happen to the Equilibrium