Suppose in the market for iPhones,the following two changes take place: (1)the cost of making iPhones falls and (2)the price of smart-phone data plans fall.What happens to the equilibrium price and the equilibrium quantity?

Question

Quizplus · Accepted Answer

The cost of making iPhones falling increases supply, while the price of data plans falling increases demand. The increase in supply tends to lower the price, while the increase in demand tends to raise it, making the price indeterminate. However, both changes increase the equilibrium quantity.

Suppose in the Market for IPhones,the Following Two Changes Take