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 production cost of computers decreases. This typically leads to a lower price for consumers (equilibrium price falls) and an increase in the quantity of computers sold (equilibrium quantity increases) as they become more affordable.

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