Why is this statement wrong economists argue that lower, Ask an Expert

Economics

Why is this statement wrong: "Economists argue that lower prices will result in fewer units being supplied. However, there are exceptions to this rule. For example, in 1972, a very simple 10-digit electronic calculator sold for $120. By 2000, the price of the same type of calculator had declined to less than $5. Yet business firms produced and sold many more calculators in 2000 than they did in 1971. Lower prices did not result in less production or in a decline in the number of calculators supplied."

a) The statement ignores changes in quantity demanded.

b) The statement ignores changes in tastes.

c) The statement ignores changes in the cost of production.

d) The statement ignores changes in demand.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91563111

Have any Question?Write your Review or question?

Related Questions in Business Economics

How does off-task behavior change the dynamics of the

How does off-task behavior change the dynamics of the learning environment? Provide an example and a strategy to handle the behavior.

As noted in chapter 14 of aampa distribution of income

As noted in Chapter 14 of A&A, distribution of income among various population groups followed roughly the same patterns in the USA, Sweden, and the former Soviet Union, despite the very different forms of economic organ ...

If there is an increase in demand for a service and a

If there is an increase in demand for a service, and a decrease in supply of the service, what impact will that have on the equilibrium price and quantity for the service?

How might profit maximization lead to higher demand for

How might profit maximization lead to higher demand for female workers and result in female workers earning higher wages than male workers in the same firm?

Once you have the total product curve plotted with the

Once you have the total product curve plotted with the below data, how do you calculate the average product of labor at different units of labor? And the marginal products of labor? 1 unit of labor=2 outputs per week 2 u ...

22 subjects are randomly injected with different dosages of

22 subjects are randomly injected with different dosages of insulin (X) and reduction rate in their blood-sugar levels (Y) are recorded. The results are summarized as: ΣX = 132; ΣX 2 = 917; ΣY = 44; ΣY 2 = 348; ΣXY = 4 ...

Compute the cross elasticity of demand and characterize the

Compute the cross elasticity of demand and characterize the goods as complements or substitutes (Please use "Arc Elasticity" to calculate) a. Regular Flu shot offered by pharmacy Boxes of Tamu Flu sold by pharmacy ...

A sample of 184 randomly selected students found that the

A sample of 184 randomly selected students, found that the proportion of students planning to travel home for Thanksgiving is 0.69. What is the standard deviation of the sampling deviation?

Find the probability that 4 randomly selected people all

Find the probability that 4 randomly selected people all have the same birthday, given that all of them were born in September. Ignore leap years.

Identify how protecting sovereign boundaries in regards to

Identify how protecting sovereign boundaries in regards to intellectual property has a positive effect on the GDP. Your answer should be in complete sentences

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert