All else equal,the desired increase in the supply of smart phones for Google would cause the equilibrium price of the smart phones to ________ and the equilibrium quantity of the smart phones to ________.

Question

Quizplus · Accepted Answer

According to the law of supply, an increase in supply results in a decrease in price and an increase in quantity. Therefore, if Google increases the supply of smart phones, the equilibrium price would decrease and the equilibrium quantity would increase. Choice C is the only one that reflects this relationship.

All Else Equal,the Desired Increase in the Supply of Smart