Technological advancements have led to lower prices and an increase in the sale of digital cameras. How does this affect the digital photo printing paper market?
A) The demand curve for digital photo printing paper shifts to the right.
B) The demand curve for digital photo printing paper shifts to the left.
C) The supply curve for digital photo printing paper shifts to the right.
D) The supply curve for digital photo printing paper shifts to the left.

Question

Quizplus · Accepted Answer

The increase in the sale of digital cameras, due to technological advancements and lower prices, typically leads to more people taking digital photos. This increase in digital photography activity is likely to increase the demand for digital photo printing paper, as more people may want to print their digital photos. Therefore, the demand curve for digital photo printing paper shifts to the right.

Technological Advancements Have Led to Lower Prices and an Increase