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Think of a real life good or service that experienced a decrease in price. Identify the good or service

and explain if the lower price was the result of a change in demand or a change in supply.

User Drake Wu
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1 Answer

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Final answer:

The decrease in price of televisions is a result of increased supply due to advancements in manufacturing technology and production efficiencies, leading to lower production costs.

Step-by-step explanation:

When considering a real-life example of a good or service that experienced a decrease in price, one might think of consumer electronics like televisions. Over time, as technology advances and becomes more efficient, the supply of these goods increases. This is because new manufacturing processes and innovations reduce production costs. As a result, the price of televisions drops, allowing more consumers to purchase them.

In this case, the lower price is primarily the result of a change in supply. Advanced technology and increased production efficiencies lead to cost savings for manufacturers, which are often passed down to consumers in the form of lower prices. This is different from a change in demand, where factors such as consumer preferences or income levels might affect the quantity demanded at a given price.

User Sudharsan Selvaraj
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