1. The demand for mobile phone 'apps' has skyrocketed due to the development of new, more technologically sophisticated mobile phones. Furthermore, there has been substantial technological innovation in the production process such that the marginal cost of producing 'apps' has fallen over time. Also, new small 'app' businesses have been attracted to the short-run profits being generated in this industry.Using the demand-supply model to analyse this situation, we can say: the quantity of mobile phone 'apps' sold ...
2. a.will tend to rise and the price will tend to remain unchanged
3. b.will tend to rise but the price could rise or fall
4. c.will tend to rise and the price will tend to fall
5. d.will tend to fall and the price will tend to rise
6. e.could rise or fall and the price could rise or fall
7. f.I have no idea