We observe that the equilibrium price of digital cameras has fallen and the equilibrium quantity of digital cameras has increased. Which of the following events could be responsible for this?

Question

Quizplus · Accepted Answer

Technological advances in digital camera production can lead to a decrease in production costs, allowing suppliers to offer digital cameras at lower prices. This can result in a lower equilibrium price and a higher equilibrium quantity as more consumers are able to afford digital cameras.

We Observe That the Equilibrium Price of Digital Cameras Has