A theory asserts that manufacturers are less willing to sell units of output as the price of a good decreases.However, as the price of computers fell throughout the 1990s, more computers were sold.Which of the following best explains the apparent conflict between theory and data?
A)The theory must be invalid.
B)The theory rests on assumptions that are too simplistic.
C)It is likely that variables other than the price and quantity of computers sold were changing.
D)All variables other than the price and quantity of computers sold were unchanged.

Question

Quizplus · Accepted Answer

The apparent conflict can be explained by the fact that other variables, such as technological advancements or increased demand, were likely changing, affecting the quantity of computers sold despite the price decrease.

A Theory Asserts That Manufacturers Are Less Willing to Sell