There is a technological advance in the production of digital watches. This will cause:
A) demand to increase.
B) supply to increase.
C) the price to increase.
D) supply to decrease.

Question

Quizplus · Accepted Answer

The technological advance in the production of digital watches will increase the supply of digital watches, as it will become easier and more cost-effective to produce them. This increase in supply should lead to lower prices and greater availability, which could in turn stimulate demand. However, the initial impact will be on supply rather than demand.

There Is a Technological Advance in the Production of Digital