If a technological advance takes place in the computer industry, then the equilibrium price of a computer will ________ and the equilibrium quantity will ________.

Question

Quizplus · Accepted Answer

A technological advance in the computer industry typically leads to a decrease in production costs, which can increase supply. As supply increases, the equilibrium price tends to fall, and the equilibrium quantity tends to increase, as more consumers can afford to buy computers at lower prices.

If a Technological Advance Takes Place in the Computer Industry