If improvements in technology have reduced the cost of producing personal computers, you accurately predict that in the market for personal computers, there will be a(n)

Question

Quizplus · Accepted Answer

Improvements in technology reducing the cost of production typically lead to an increase in the supply of the product because producers can make more at a lower cost. This increased supply, assuming demand remains constant, leads to a decrease in the price. The lower price then increases the quantity demanded by consumers, as the product becomes more affordable. This scenario does not necessarily increase demand itself (which would shift the demand curve), but rather increases the quantity demanded at the new lower price.

If Improvements in Technology Have Reduced the Cost of Producing