If it is discovered that using a smartphone regularly causes brain cancer, then in the market for smartphones,
A)equilibrium price will fall and equilibrium quantity will rise.
B)equilibrium price and equilibrium quantity will fall.
C)there will be no change in equilibrium price or quantity.
D)equilibrium price will rise as demand for computers decreases.
E)equilibrium price will rise as supply decreases.

Question

Quizplus · Accepted Answer

If it is discovered that using a smartphone regularly causes brain cancer, it will lead to a decrease in demand for smartphones. As consumers become aware of the risks associated with using smartphones, they may opt for other alternatives or reduce the amount of time they spend on their phones. This will result in a leftward shift in the demand curve, causing a decrease in both equilibrium price and equilibrium quantity.

If It Is Discovered That Using a Smartphone Regularly Causes