The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-The theory that explains the shift in the production of color TV sets from the United States to Japan and Taiwan is called the _____ theory.

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-The theory that explains the shift in the production of color TV sets from the United States to Japan and Taiwan is called the _____ theory.

Quizplus · Accepted Answer

The product life cycle theory explains how a product starts in a high-income country (like the U.S.) and as it matures, production shifts to lower-cost countries (like Japan and Taiwan). This theory accounts for the shift in production locations over time as products go through their lifecycle stages of introduction, growth, maturity, and decline.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity