Suppose that there is an improvement in technology in the market ...

[Collmarie]

Suppose that there is an improvement in technology in the market for iPhones. Which of the following is TRUE?
 
  A) Supply will increase and the market clearing price will fall.
  B) Supply will increase and the market clearing price will rise.
  C) Demand will increase and the market clearing price will rise.
  D) Demand will increase and the market clearing price will fall.

Question 2

The price of a loaf of bread is 1.50, the price of a gallon of milk is 3.00, and the price of a pound of butter is 2.40.
 
  The price of a loaf of bread relative to a gallon of milk is ________, while the price of a gallon of milk relative to a pound of butter is ________. A) 0.5; 0.8.
  B) 0.5; 1.25.
  C) 2.0; 1.25.
  D) 2.0; 0.8.

[GCabra]

Answer to Question 1

A

Answer to Question 2

B

[Collmarie]

Excellent

[FergA]

TYSM