Assume That Smartphones Are a Normal Good,and That the Prices

question 12

Multiple Choice

Assume that smartphones are a normal good,and that the prices of smartphones have fallen in recent years.Over this same period,the price of the components used to produce smartphones has also fallen and consumer incomes have risen.Which of the following best explains the falling prices of smartphones?

• A)The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left.
• B)The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right.
• C)The demand curve and the supply curve for smartphones have both shifted to the left.
• D)The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right.

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Definitions:

Machinery Account

A ledger account that tracks the acquisition cost, depreciation, and disposal of machinery, reflecting its financial impact on a business.

Freight Costs

The charges incurred for transporting goods via air, land, or sea.

Machinery

Fixed assets used in the operation of a business to produce goods or services, often having a significant lifespan and being subject to depreciation.

Installation Costs

Expenditures associated with setting up equipment or machinery for its intended use.