Author Question: Select the phrase that correctly completes the following statement. A decrease in the expected ... (Read 155 times)

mydiamond · **on:** Jun 29, 2018

Select the phrase that correctly completes the following statement. A decrease in the expected future price caused an increase in the supply of smartphones. As a result

A) the equilibrium quantity of smartphones decreased.
B) the price of smartphones decreased and the quantity of smartphones demanded increased.
C) the price of smartphones decreased and the demand for smartphones increased.
D) the price of smartphones decreased. The lower price caused the supply of smartphones to decrease.

Question 2

Each person goes about her daily business seeking to maximize her own self interests. In doing so, she contributes to the welfare of society at large. This is the idea underlying Adam Smith's invisible hand.

Indicate whether the statement is true or false