Join us as we review the FP&A Learning System
in our weekly VLOG. This week, let's go through Chapter 10 - Microeconomics.
This week's question is:
A manufacturer of smartphones is selling its current most popular model at $350. However, a competitor has just introduced a new model with improved features at a matching price. What effect is that likely to have on the current model?
A. It may shift the demand curve downward, resulting in a lower equilibrium price
B. It may shift the supply curve downward, resulting in a lower equilibrium price
C. It may increase the income effect, resulting in a higher equilibrium price
D. It may increase the current model’s income utility, resulting in a higher equilibrium price
Watch the video to find out how to determine the solution, and get the correct answer.
Stay tuned for next week's video on Chapter 11 - Managing FP&A Projects.
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