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:

Sum-Of-The-Years-Digits

An accelerated method of depreciation which calculates annual depreciation by multiplying an asset's cost by a fraction that decreases year by year.

Scrap Value

The estimated residual value of an asset after it has reached the end of its useful life.

Transmitter

A device that sends signals, such as radio waves, from one location to another, typically used in communication systems.

Double-Declining-Balance

An accelerated depreciation method that doubles the rate at which an asset's book value is reduced compared to straight-line depreciation.