Prices of Smartphones (Assume That This Is a Normal Good)have

question 215

Multiple Choice

Prices of smartphones (assume that this is a normal good) 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:

Change Blindness

A failure to be aware of visual information when one’s attention is directed elsewhere.

Automatic Processing

Automatic processing involves unconscious, effortless mental operations that allow us to perform tasks without deliberate attention to detail.

Controlled Processing

A type of cognitive processing that requires conscious, deliberate thought and attention, often necessary for complex tasks or learning new information.

Altered State

An altered state refers to a condition that is significantly different from the normal waking state, such as those induced by meditation, drugs, or hypnosis.