iPhones are mostly made of aluminum. Assume that iPhones are normal goods and that their substitutes are Android phones. What will happen to the market equilibrium for iPhones if the price of Android phones decreases and the price of aluminum decreases? Price will increase, and the effect on quantity will be ambiguous O Price will fall, and the effect on quantity will be ambiguous. Quantity will increase, and the effect on price will be ambiguous Quantity will fall, and the effect on price will be ambiguous.

iPhones are mostly made of aluminum. Assume that iPhones are normal goods and that their substitutes are Android phones. What will happen to the market equilibrium for iPhones if the price of Android phones decreases and the price of aluminum decreases? Price will increase, and the effect on quantity will be ambiguous O Price will fall, and the effect on quantity will be ambiguous. Quantity will increase, and the effect on price will be ambiguous Quantity will fall, and the effect on price will be ambiguous.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 8P

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