Which of the Following Would Not Cause the Market Supply

question 122

Multiple Choice

Which of the following would not cause the market supply of cell phones to change?

• A)Telecommunications are deregulated,and anyone who wants to can produce and sell cell phones.
• B)A cheaper technology for producing plastics used in producing cell phones is developed.
• C)A reduction in the demand for cell phones causes the price to fall.
• D)Taxes levied on cell phone production are reduced.

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Definitions:

Per Unit

A measure or cost expressed per single item or quantity of a product or service.

Cost Behaviour

The way in which costs change in relation to alterations in an organization's level of activity.

Relevant Range

The range of activity within which the assumptions about fixed costs and variable cost behavior hold true.

Production

The process of creating goods and services through the combination of human labor, materials, and technology.