Zinc Communications Developed a New Type of Cellular Telephone That

question 92

Multiple Choice

Zinc Communications developed a new type of cellular telephone that has a three-dimensional (3-D) screen. The company holds a patent on this technology, so they are the only seller of the 3-D phone when it is introduced. Over time, other companies introduce phones that are similar but not identical (i.e., they do not violate the patent held by Zinc) . What happens to the demand for 3-D phones facing Zinc and to the profit-maximizing price for the 3-D phone as these similar products enter the market?

• A) Demand becomes less elastic, price increases.
• B) Demand becomes less elastic, price declines.
• C) Demand becomes more elastic, price increases.
• D) Demand becomes more elastic, price declines.

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Definitions:

Emotional Effects

The impact of various factors on an individual's emotions and feelings, influencing mood and psychological state.

Economic Effects

The impact of various factors on the economy, including policies, market trends, and social changes, affecting business performance and societal welfare.

Divorce

The formal termination of a marriage through a court or authorized entity.

Polygamy

A marriage system in which an individual has multiple spouses at the same time.