-Refer to the above table for tablets. Suppose the demand for smartphones rises because more people use the Internet with a tablet. The new equilibrium price will be
A) $200.
B) $275.
C) more than $275.
D) impossible to be determined given the information.

Question

-Refer to the above table for tablets. Suppose the demand for smartphones rises because more people use the Internet with a tablet. The new equilibrium price will be
A) $200. 
B) $275. 
C) more than $275. 
D) impossible to be determined given the information.

Quizplus · Accepted Answer

When the demand for smartphones increases due to more people using the Internet with a tablet, it implies that tablets and smartphones are complementary goods. An increase in demand for smartphones would likely increase the demand for tablets as well, pushing the equilibrium price of tablets above its current level. Since $275 is the highest price option given, the new equilibrium price must be more than $275.

-Refer to the Above Table for Tablets