An electronics manufacturer can produce either MP3 players or cell phones. As the result of a decrease in the price of cell phones, the firm produces more MP3 players and fewer cell phones. An economist would explain this by saying
◦ the supply of cell phones increased and the supply of MP3 players decreased.
◦ there has been an increase in the quantity supplied of cell phones and a decrease in the quantity supplied of MP3 players.
◦ there has been a decrease in the quantity supplied of cell phones and an increase in the supply of MP3 players.
◦ the supply of cell phones increased and the quantity supplied of MP3 players decreased.