What happens to the quantity of cell phones supplied and the ...

[hbsimmons88]

What happens to the quantity of cell phones supplied and the supply of cell phones if the price of a cell phone falls?
 
  What will be an ideal response?

Question 2

Refer to Figure 4-5. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing producer surplus after the imposition of the price floor?
 
  A) B + C + D + E + F B) A C) B + D + F D) C + E

[jaygar71]

Answer to Question 1

If the price of cell phones falls and nothing else changes, then the quantity of cell phones supplied will decrease and there is a movement down along the supply curve for cell phones. The supply of cell phones, however, remains unchanged and the supply curve does not shift.

Answer to Question 2

C

[hbsimmons88]

Great answer, keep it coming

[lkanara2]

YES! Correct, THANKS for helping me on my review