Smart phones are becoming less expensive as new technology reduces the cost of production. In a supply and demand model, explain the effects of the technological innovations and their effect on the quantity of smart phones.
8) What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?
9) What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?
10) For consumers, computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases. How do these changes affect the price and quantity of computer software?
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