A Decrease in the Price of Digital Cameras Would Lead

question 295

Multiple Choice

A decrease in the price of digital cameras would lead to a(n)

• A) increase in the price and quantity sold of memory cards.
• B) decrease in the price and quantity sold of memory cards.
• C) increase in the price and a decrease in quantity sold of memory cards.
• D) decrease in the price and an increase in quantity sold of memory cards.

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Definitions:

Equilibrium

The state in a market where supply equals demand, leading to a stable price for a given good or service.

Consumer Surplus

The difference in what consumers think to pay for a good or service and the actual amount they pay.

Equilibrium

A condition where the supply and demand in the market are equal, leading to stable prices.

Equilibrium Price

The price point at which the quantity of goods supplied equals the quantity of goods demanded, resulting in a balance between supply and demand.