-Refer to the Above Table

question 253

Multiple Choice

-Refer to the above table. Suppose there are technological advances in the production of smartphones. The new equilibrium price will be

• A)$275.
• B)$375.
• C)less than $275.
• D)between $275 and $375.

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Definitions:

Mohair Subsidies

Financial incentives provided by governments to support and encourage the production of mohair, a silk-like fabric or yarn made from the hair of the Angora goat.

Deregulation

The act of eliminating governmental controls and rules in a sector to promote increased competition and efficiency.

Regulation

Rules or directives made and maintained by an authority to control or manage activities, often within industry sectors, for public good.

Allocative Efficiency

A state of the economy where the distribution of resources among different uses is optimal, with no one able to be made better off without making someone else worse off.