A new cell phone is released.  Everyone rushes to buy it and a shortage develops.  Stores order more and then have a surplus.  The store reduces the price of the cell phone and sells the excess inventory.  They have achieved _______________ .Responseselasticity elasticity potential potential capitalismcapitalismequilibrium

If a monopolistically competitive seller can convince buyers that its product is of better quality and value than products sold by rival firms, all of the following occur EXCEPT _______________.a.demand increases.b.the firm gains more control over its pricec.demand becomes more inelastic.d.demand becomes perfectly elastic.

A popular mobile phone brand priced their phones at $496 and sold 100,000 units in the previous financial year. They decided to reduce their price to $396 and subsequently sold 110,000 units in this financial year. Assume that demand is linear. Which of the following statements is true? A large number of substitutes in the market for mobile phones would explain why the demand is inelastic. The elasticity of demand is elastic at all points along the demand curve. The point elasticity of demand at a price of $396 is elastic. The point elasticity of demand at a price of $396 is 0.396. The point elasticity of demand at a price of $496 is 0.496.

Because of increased competition, the price of cell phones dropped dramatically. According to the law of demand, what will happen to the quantity of cell phones demanded, given this price change?The quantity demanded will increase.The quantity demanded will decrease.The quantity demanded will either rise or fall, depending on other factors.The quantity demanded will be unaffected by this event.

When technology increases the supply of a good and lower prices increase the quantity demanded, A. the economy is reallocating resources to achieve an efficient allocation. B. consumer surplus falls. C. the invisible hand is unnecessary. D. the marginal benefit of the good increases with the quantity produced. E. the economy is no longer efficient because the quantity changes.

A monopoly produces a level of output where demand is ______________ (elastic / inelastic / unit elastic)