asked 194k views
5 votes
An increase in the demand for led light bulbs due to changes in consumer​ tastes, accompanied by an increase in the supply of led light bulbs as a result of government production subsidies​ (which lowers the production costs to​ producers), will unambiguously​ (that is, without any​ doubt) result in

1 Answer

6 votes
I believe the answer is an increase in the equilibrium quantity of LED light bulbs; the equilibrium price may increase or decrease.
As the cost to make the product came down and the demand of a certain product increase, the company would be able to obtain material to create more products, and sell more amount of it, which will lead to an increase in equilibirum quantity,
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User Gotiasits
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