If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will ________ and the equilibrium quantity will ________.

Question

Quizplus · Accepted Answer

When the cost of computer chips decreases due to technological advances, the supply of computers increases because they are cheaper to produce. This increase in supply leads to a lower equilibrium price and a higher equilibrium quantity in the market for computers.

If Technological Advances Lower the Cost of Computer Chips, in the Market