If a technological breakthrough reduces input quantities needed to produce some item,
A)cost of production will be increased.
B)the price of the product will rise.
C)the price of the product will fall.
D)quantity demanded of the product will fall.

Question

Quizplus · Accepted Answer

If the input quantities needed to produce some item are reduced due to a technological breakthrough, it means that production costs will be lowered. As a result, the producer will be able to sell the product at a lower price while maintaining profitability. Therefore, the price of the product is likely to fall, which may increase the demand for the product.

If a Technological Breakthrough Reduces Input Quantities Needed to Produce