All Else Being Equal,the Decrease in Consumer Preference Predicted by Apple

question 186

Multiple Choice

All else being equal,the decrease in consumer preference predicted by Apple for its iPhone 5 would be represented by a

• A) shift of the supply curve for iPhones to the right.
• B) shift of the supply curve for iPhones to the left.
• C) shift of the demand curve for iPhones to the right.
• D) shift of the demand curve for iPhones to the left.

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Definitions:

Capital Stock

The total amount of physical, human, and intangible assets that a firm uses to generate income, often referred to in the context of fixed capital like machinery and buildings.

Long-Run Aggregate Supply Curve

A vertical line representing the maximum amount of goods and services an economy can supply when it is fully employed, regardless of price levels in the long term.

Aggregate Demand Curve

A curve that illustrates the total demand for goods and services in an economy at various price levels.

Capital Stock

The total amount of physical, financial, and human capital available in an economy, used to produce goods and services.