Country B's entrepreneurs (businessmen) independently decide
what to manufacture based on supply and consumer demand. The
Chief Executive Officer of a cell phone company decided to
increase production levels of their latest cell phone model, while
simultaneously decreasing the output levels of their older cell
phones. The motivation for the change was based on a consumer
survey that showed demand for the newer, updated cell phones
was greater than the demand for the older cell phones. Supply and
demand demonstrated the need to produce more of the newer
models to increase the company's profits.