Advances in technology have reduced the cost of manufacturing MP3 players. If demand does not change,
A. more MP3 players will be sold at a higher price.
B. fewer MP3 players will be sold at a higher price.
C. more MP3 players will be sold at a lower price.
D. fewer MP3 players will be sold at a lower price.
I think B...?
I don't think so.
Yes, C. Do you understand why?
To determine the correct answer, we need to understand the relationship between the cost of manufacturing MP3 players and their price and demand.
Due to advances in technology, the cost of manufacturing MP3 players has reduced. When the manufacturing cost decreases, it becomes more affordable for companies to produce MP3 players, potentially leading to an increase in the supply of MP3 players available in the market.
However, the question states that "demand does not change." If demand remains the same, but the supply of MP3 players increases, it can create a situation of oversupply. This oversupply could lead to a decrease in the price of MP3 players because companies may reduce prices to attract buyers and clear excess inventory.
Based on this analysis, the correct answer is C. More MP3 players will be sold at a lower price.