PRC-3 · Chapter 10 · Question 2 of 70
The price of smartphones drops by 15% due to a massive holiday sale. What is the immediate effect on the demand graph for smartphones?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A downward movement along the existing demand curve
Explanation
A change in the price of the good itself causes a movement along the demand curve (expansion in quantity demanded), not a shift of the curve.
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