An advance in the technology employed to manufacture affordable smartphones will result in a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold in the market for affordable smartphones.

Question

Quizplus · Accepted Answer

When technology improves, it often leads to lower production costs. This can lead to a decrease in the equilibrium price of the product and an increase in the equilibrium quantity demanded and supplied. In the case of affordable smartphones, the decrease in production costs could lead to cheaper prices and more people buying them.

An Advance in the Technology Employed to Manufacture Affordable Smartphones