A technological advance reduces the cost of manufacturing digital cameras. As part of the transition to a new equilibrium in the digital camera market, there would occur an
A) upward movement along the demand curve for digital cameras
B) excess demand for digital cameras
C) increase in the supply curve of digital cameras
D) increase in the demand curve for digital cameras

Question

Quizplus · Accepted Answer

A technological advance that reduces manufacturing costs typically results in an increase in the supply of digital cameras, shifting the supply curve to the right.

A Technological Advance Reduces the Cost of Manufacturing Digital Cameras