Suppose in the market for iPhones, the following two changes take place: (1) the cost of making iPhones falls, and (2) customers begin to prefer Android-platform smartphones over iPhones. What happens to equilibrium price and equilibrium quantity

Incomplete question.

Options:

A) The equilibrium price is indeterminate, but the equilibrium quantity falls.

B) The equilibrium price and the equilibrium quantity fall.

C) The equilibrium price falls, but the equilibrium quantity is indeterminate.

C) The equilibrium price falls, but the equilibrium quantity is indeterminate.

Explanation:

Remember, the Equilibrium quantity refers to an equal level of supply and demand for a product.

But in such a case lie this, where the cost of making iPhones falls, meaning lower unit cost; selling cost, and customers begin to prefer Android-platform smartphones over iPhones, meaning there's falling demand, then it would result in the equilibrium price falling, but the equilibrium quantity would be indeterminate as it depends on the size of the changes in demand and supply.

C: Price will increase and quantity will decrease.

(Question 40)

B: Subsidy

(Question 33)

D: A change in tastes and preferences

(Question 34)

C: Quantity demanded decreases

(Question 31)

C: The two goods are substitutes

(Question 32)

A: Making profits

(Question 29)

B: Demand goods and services in the product market

(Question 30)

Explanation: