A technological breakthrough lowers the cost of manufacturing VCRs. As a result, the market changes to a new equilibrium because of

Question

Quizplus · Accepted Answer

The lower cost of manufacturing VCRs results in a decrease in the price of VCRs, which leads to an increase in the quantity supplied at each price point. This creates a rightward shift in the supply curve for VCRs, which leads to a new equilibrium with a lower price and a higher quantity sold.

A Technological Breakthrough Lowers the Cost of Manufacturing VCRs