Marks I. Discuss one (1) of the following statements, indicating whether you agree or disagree and...

Marks I. Discuss one (1) of the following statements, indicating whether you agree or disagree and why. Be clear and concise. A graphical analysis may aid in answering the questions.

1. Over an extended period of time you observe a decrease in both the price and output of a good. Such a price pattern rules out the possibility that the cost of production of this good has increased, since if this were the case, the supply curve would shift up and to the left, and price would increase.

2. Since the introduction of the original iPhone in January 2007, the price of the base model has fallen consistently over time, technology has improved, and Apple has sold millions and millions of the devices. This price and output pattern indicates that the demand for iPhones is highly elastic and that technological improvements have lowered costs and shifted the supply curve

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Rahul Sunny answered 8 months ago

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