Question

In the market for cell phones, if the supply of cell phones increases, what will happen to the price and quantity of cell phones?

a. price will increase and quantity will increase

b. price will decrease and quantity will decrease

c. price will increase and quantity will decrease

d. price will decrease and quantity will increase

Answer 1

If the supply of cell phones increases, the price will decrease and the quantity will increase.

Step-by-step explanation:

In the market for cell phones, if the supply of cell phones increases, the price will decrease and the quantity will increase.

When the supply of a product increases, it means that there are more cell phones available in the market. As a result, sellers will have to lower the price in order to sell all the additional cell phones.

On the other hand, the increase in supply will lead to a higher quantity of cell phones being available for consumers to purchase.