If All Else Is Held Constant,what Would Happen to the Equilibrium

question 5

Multiple Choice

If all else is held constant,what would happen to the equilibrium price and quantity of iPhones if the price of an Android phone decreased?

• A) They would both increase.
• B) They would both decrease.
• C) One would increase and one would decrease,but we don't know which would do what.
• D) The price would increase and the quantity would decrease.
• E) The price would decrease and the quantity would increase.

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Definitions:

Managerial Purposes

Utilized to describe the actions or decisions made by managers in running a company, often aimed at achieving strategic goals and maintaining operational efficiency.

Accounting Income

It is the income reported by a company as per the accounting principles, including all revenues minus expenses, excluding any unrealized gains or losses.

Adjustments

Modifications made to financial statements or data to correct inaccuracies or allocate revenues and expenses.

Free Cash Flow

The cash a company generates after accounting for cash outflows to support operations and maintain its capital assets, indicating the financial health and profitability of a company.