Final answer:
Technological advancements that reduce the cost of manufacturing cell phones will likely result in more cell phones being sold at a lower price due to an increase in supply and a reduction in production costs.
Step-by-step explanation:
When technological advancements reduce the cost of manufacturing cell phones, this leads to a change in supply in a perfectly competitive market. These advancements increase the supply curve because they allow firms to produce goods at lower costs, which typically leads to firms offering more of their product at the same price or a lower price. The market response will see an increase in the quantity of cell phones supplied and, if the demand remains unchanged, this larger supply will drive the market price down.
Option B of the presented choices aligns with the expected economic outcome, which is: More cell phones will be sold at a lower price. This occurs because when a technological improvement leads to a reduction in costs of production, firms can reduce their prices to sell more units while still maintaining a profit or attracting consumers away from competitors. This, in turn, often increases the total quantity sold in the market. Moreover, higher profits for firms might attract new firms into the market, further increasing supply until profits are normalized.