Suppose that in addition to reducing the cost of production, a new battery technology makes cell phones operate more efficiently. What will happen in the market for cell phones?

a. The equilibrium price will increase but we cannot predict the change in equilibrium quantity.
b. The equilibrium quantity will increase but we cannot predict the change in equilibrium price.
c. The equilibrium price and quantity will decrease.
d. The equilibrium price and quantity will increase.



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