question archive Smartphones and apps are complements and the price of an app falls

Smartphones and apps are complements and the price of an app falls

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Smartphones and apps are complements and the price of an app falls. Simultaneously, the number of firms producing smartphones increases. As a result, the equilibrium price of a smartphone _____ and the equilibrium quantity _____.

A. falls; might increase, decrease, or not change

B. falls; decreases

C. might rise, fall, or not change; increases

D. might rise, fall or not change; might increase, decrease, or not change

E. None of the above answers is correct.

Option 1

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