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Demand and Supply Basics
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If the price of a popular smartphone decreases, what is the likely impact on its demand and supply?

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Learning Path
Learning Path

Question & Answer
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Understand Question
2
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Choose AnswerChoose the Best Answer

A

Demand will decrease, and supply will increase

B

Demand will increase, and supply will decrease

C

Demand will increase, and supply will increase

D

Demand will decrease, and supply will decrease

Understanding the Answer

Let's break down why this is correct

When the price goes down, people can buy more phones because they are cheaper. Other options are incorrect because Some think that cheaper phones make people want less; It is easy to think that more buyers mean sellers will cut back.

Key Concepts

Law of Demand
Law of Supply
Market Equilibrium
Topic

Demand and Supply Basics

Difficulty

medium level question

Cognitive Level

understand

Deep Dive: Demand and Supply Basics

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Definition
Definition

Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.

Topic Definition

Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.

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