Refer to the information provided in Figure 12.2 below to answer the question(s) that follow. Figure 12.2
-Refer to Figure 12.2. A technological advance causes the supply of personal computers to increase. The graph of this situation represents a
A) general equilibrium analysis because it identifies what happens to both equilibrium price and quantity of personal computers.
B) partial equilibrium analysis because it considers only this one industry.
C) firm-specific analysis because only one firm would be affected by the technological advance.
D) technological analysis because the change resulted from a technological advance.

Question

Refer to the information provided in Figure 12.2 below to answer the question(s) that follow.  Figure 12.2
-Refer to Figure 12.2. A technological advance causes the supply of personal computers to increase. The graph of this situation represents a
A) general equilibrium analysis because it identifies what happens to both equilibrium price and quantity of personal computers. 
B) partial equilibrium analysis because it considers only this one industry. 
C) firm-specific analysis because only one firm would be affected by the technological advance. 
D) technological analysis because the change resulted from a technological advance.

Quizplus · Accepted Answer

The correct answer is a partial equilibrium analysis because it focuses on the effects within a single market (the personal computer market) without considering the broader economy or other markets.

Refer to the Information Provided in Figure 12