Unit 1 Test

Question 38 • (OC27) Economics-2102310-Sem-Meadows

A thrifty shopper wants to purchase a new phone that is made with quality parts. What factors should they consider?

Answer

High quality phones contain rare earth metals that are a less scarce resource and cost less to the consumer.

High quality phones contain rare earth metals that are a less scarce resource and cost more to the consumer.

High quality phones contain rare earth metals that are a more scarce resource and cost more to the consumer.

High quality phones contain rare earth metals that are a more scarce resource and cost less to the consumer.

Explanation

Rare earth metals used in phone components are relatively scarce, so obtaining them can increase manufacturing costs. A phone made with quality parts may therefore cost more to the consumer. The matching choice is that these phones contain rarer materials and cost more.

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2.1 The Law of Supply and Demand

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