The development of new technology reduces the cost of producing calculators.In addition, assume that consumers have cut back on their scheduled purchases in anticipation of further cost-saving developments.As a result, we can expect
A)a decrease in price but no predictable change in output.
B)a decrease in output but no predictable change in price.
C)an increase in output but no predictable change in price.
D)a predictable decrease in both output and price.

Question

Quizplus · Accepted Answer

The development of new technology reduces production costs, leading to a decrease in price. However, with consumers delaying purchases, demand decreases, making the change in output unpredictable.

The Development of New Technology Reduces the Cost of Producing