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Business Data Management · Quiz 1 · 19 Jul 2026 · May 2026 term

Question 13: Assume, Apple launches its latest flagship iPhone-17. Si…

Question 13

+2 marksOne correct option

Assume, Apple launches its latest flagship iPhone-17. Simultaneously, two market forces occur: First, a global semiconductor microchip shortage severely limits manufacturing output due to trade deal tariff issues. Second, Google launches an aggressive marketing campaign during 2026 ICC Men's T20 World Cup, that successfully convinces millions of premium smartphone users to switch to Android devices.
Assuming the drop in iPhone consumer demand is identical in magnitude to the drop in production supply, what will happen to the equilibrium price (P*) and quantity (Q*) of the new iPhone?

  1. A

    Price will remain unchanged; Quantity will decrease.

  2. B

    Price will increase; Quantity will remain unchanged.

  3. C

    Price will decrease; Quantity will decrease.

  4. D

    Price will remain unchanged; Quantity will increase.

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Correct answer

  • A

    Price will remain unchanged; Quantity will decrease.

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Question 13 of 23 in the IIT Madras BS Business Data Management (BDM) Quiz 1 paper sat on 19 Jul 2026, in the May 2026 term (Business Data Management 16 Jul 26). It carries 2 marks.

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