Which of the following would shift the supply curve for smartphones to the right?
A) an increase in consumer income (assuming that all smartphones are normal goods)
B) an increase in the price of a substitute in production
C) a decrease in the price of an input used to produce smartphones
D) a decrease in the number of firms that produce smartphones
Question 2
If the cross-price elasticity of demand between Breeze Detergent and Faber Detergent is a relatively large positive number, then it indicates that
A) the two brands are probably made by the same company.
B) consumers have a distinct preference for one brand versus the other.
C) detergents are necessities.
D) the two brands of detergent are close substitutes.
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