Sunday, November 13, 2011

Daily Review -- Supply and Demand


Here's a question from my Kindle App that is still in development. 

  Digital technology has increased the access to digital data such as the time.  Consumers now find that they can find the time on their cell phone or computer screen.  What would economists predict would happen to the market for wrist watches as a result of this digital technology?

a.       ééP
b.      êéP
c.       ééP
d.      êêP

My answer is "d".  Are men and women wearing watches anymore?  I believe that professionals who work with their hands probably do, but for the vast amount of people, they use their phones to check the time.  I think this is an example of a change in preferences.  

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