A New Product Comes Out That Has Better Quality Than

question 81

Multiple Choice

A new product comes out that has better quality than the old product, and has a lower manufacturing cost. What is the impact on the product using the supply and demand model?

• A) demand and supply will both decrease; thus, quantity will decrease
• B) demand and supply will both increase; thus, quantity will increase
• C) demand and supply will both decrease; thus, price will decrease
• D) demand and supply will both increase; thus, price will increase

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Definitions:

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A systematically organized set of concepts, explanations, and predictions about phenomena that seeks to clarify relationships or understand principles.

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The active acquisition of information from a primary source using the senses or instruments that extend beyond natural sensory capabilities.

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