There are simultaneous changes in the demand for and supply of global-positioning-system (GPS) devices, with the consequences being an unambiguous increase in the market clearing price of these devices but no change in the equilibrium quantity. What changes in the demand for and supply of GPS devices could have generated these outcomes?

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Computers & Technology

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16 June, 09:29

There are simultaneous changes in the demand for and supply of global-positioning-system (GPS) devices, with the consequences being an unambiguous increase in the market clearing price of these devices but no change in the equilibrium quantity. What changes in the demand for and supply of GPS devices could have generated these outcomes?

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Rylee Martin · Answer 1

Answer: Increment in supply and decrement in demand

Explanation: The changes made in the GPS system will lead to the increment of the supply of the GPS service and lowering the GPS demand.

As the equilibrium quantity is remaining same that is defined as the quantity of the product that is supplied and demanded is equal while the increment in the market clearing price that is market will shift towards that cost.

Thus, this situation will give raise to the quantity supply to be more and demand of the service to be low.