Technological progress increases the efficiency of mass producing HDTV-capable television sets. At the same time, more cable and television networks begin broadcasting in HDTV format, increasing the appeal of HDTV-capable television sets. On the basis of this information, what can be said about conditions in the HDTV market?

Question

Quizplus · Accepted Answer

The increase in technological efficiency and broadcasting networks will lead to an increase in demand for HDTV-capable sets, ultimately increasing the equilibrium quantity. However, the effect on price cannot be determined, as it depends on the magnitude of these changes and other market factors.

Technological Progress Increases the Efficiency of Mass Producing HDTV-Capable Television