Select the phrase that correctly completes the following statement."A positive change in technology caused an increase in the supply of flat-screen televisions.As a result, ________."
A)the price of flat-screen televisions decreased and the demand for flat-screen televisions increased
B)the equilibrium quantity of flat-screen televisions decreased
C)the price of flat-screen televisions decreased and the quantity demanded of flat-screen televisions increased
D)the price of flat-screen televisions decreased, and the lower price caused the supply of flat-screen televisions to decrease

Question

Quizplus · Accepted Answer

An increase in supply, caused by a positive change in technology, would lead to a decrease in the price of flat-screen televisions and an increase in the quantity demanded due to the law of supply and demand. Therefore, only option C correctly completes the statement. Option A incorrectly suggests a decrease in demand for flat-screen televisions, and option B incorrectly suggests a decrease in the equilibrium quantity. Option D suggests a decrease in supply, which is not consistent with the initial statement.

Select the Phrase That Correctly Completes the Following Statement