Question

Suppose that the supply of cameras films increases due to an increase in foreign imports of camera films. Which of the following will most likely occur?

• A. The equilibrium price of cameras will increase.
• B. The equilibrium quantity of cameras will decrease.
• C. The equilibrium price of camera will decrease.
• D. The equilibrium quantity of camera film will increase.

Answer 1

The correct option is D The equilibrium quantity of camera film will increase.

If the supply of camera films increase due of foreign imports of camera films the equilibrium quantity of camera films will increase as the supply is increasing. There also might be a slight decrease in the price of camera films if the forces are to come back to equilibrium.