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AP® Macroeconomics

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Supply and Demand Shift: Wearable Fitness Devices

APMACR-F1VREX

After a celebrity is seen sporting a wearable fitness device, everyone decides to try one. Meanwhile, the price of palladium, an important component in electronics, increases.

Based on this information, what can we expect to happen in the market of wearable fitness devices?

A

The supply will increase, the demand will increase, and the equilibrium quantity will increase.

B

The supply will increase, the demand will decrease, and the equilibrium price will fall.

C

The supply will decrease, the demand will increase, and the equilibrium quantity will stay the same.

D

The supply will decrease, the demand will increase, and the equilibrium price will rise.

E

The supply will increase, the demand will increase, and the equilibrium price will increase.