For many years short wave radios were a way of getting news from faraway places and in difficult conditions. But as new technologies have spread, the people listening to these devices has decreased. (Source: The Economist, July 7, 2012) As new technology creates substitutes for short-wave radios, the demand for short-wave radios ________ and the consumer surplus from short-wave radios ________.
A) increases; increases
B) decreases; decreases
C) does not change; decreases
D) decreases; does not change

Question

Quizplus · Accepted Answer

As new technology provides substitutes, the demand for short-wave radios decreases, leading to a decrease in consumer surplus.

For Many Years Short Wave Radios Were a Way of Getting