Ask Question
6 August, 11:42

The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for incandescent light bulbs decreased. This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incandescent light bulbs decreased even further. Evaluate this statement.

+1
Answers (1)
  1. 6 August, 13:38
    0
    The answer is:

    This statement is false. Fluorescent light bulbs (FLB) and incandescent light bulbs (ILB) are substitute goods, so a decrease in the price of one of them (FLB) should increase the quantity demanded for that product (FLB) and decrease the quantity demanded of the other (ILB).

    A decrease in the price of any product (including ILB) would never decrease its quantity demanded.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers