Use the following to answer questions :
Figure 3-2
-Let P* and Q* represent market clearing price and quantity, respectively.Given the supply and demand curves drawn in Figure 3-2, a technological advance that makes the production of Q more efficient will cause:
A)P* and Q* to climb.
B)P* and Q* to fall.
C)P* to climb while Q* falls.
D)Q* to climb while P* holds fixed.
E)none of the above.

Question

Use the following to answer questions :
Figure 3-2 
-Let P* and Q* represent market clearing price and quantity, respectively.Given the supply and demand curves drawn in Figure 3-2, a technological advance that makes the production of Q more efficient will cause:
A)P* and Q* to climb. 
B)P* and Q* to fall. 
C)P* to climb while Q* falls. 
D)Q* to climb while P* holds fixed. 
E)none of the above.

Quizplus · Accepted Answer

A technological advance making the production of Q more efficient would typically shift the supply curve to the right, leading to a lower equilibrium price (P*) and a higher equilibrium quantity (Q*). However, none of the provided options accurately describe this outcome.

Use the Following to Answer Questions