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, it becomes cheaper to produce computers. This typically leads to a decrease in the price of computers as supply increases, and an increase in the quantity sold as more consumers are willing to buy at lower prices.

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