Final answer:
The statement evaluates the relationship between the price of compact fluorescent light bulbs and the demand for incandescent light bulbs. As the price of compact fluorescent light bulbs decreases, the demand for incandescent light bulbs also decreases, causing their price to fall even further.
Step-by-step explanation:
The statement is evaluating the relationship between the price of compact fluorescent light bulbs and the demand for incandescent light bulbs. According to the information provided, improvements in production technology have led to a decrease in the price of compact fluorescent light bulbs. This decrease in price has caused the demand for incandescent light bulbs to decrease as well. As the price of incandescent light bulbs continues to fall, the demand for them decreases even further.
This relationship between price and demand is known as the law of demand. According to the law of demand, as the price of a good or service decreases, the quantity demanded of that good or service increases. Conversely, as the price of a good or service increases, the quantity demanded of that good or service decreases.
In this case, the decrease in the price of compact fluorescent light bulbs has caused consumers to switch from incandescent light bulbs to compact fluorescent light bulbs, leading to a decrease in the demand for incandescent light bulbs. This decrease in demand has further caused the price of incandescent light bulbs to fall.