New technology developed in 1999 resulted in a reduction in the cost of manufacturing flat -screen televisions that used liquid crystal displays (LCD). How did this change in technology affect the market for flat -screen televisions?
A) The new technology caused an increase in the supply of flat -screen televisions and a decrease in price of flat -screen televisions.
B) The new technology caused an increase in the quantity of flat -screen televisions supplied.
C) The new technology caused an increase in the supply of flat -screen televisions and an increase in price of flat -screen televisions.
D) The new technology caused an increase in the demand for flat -screen televisions.

Question

Quizplus · Accepted Answer

The new technology made it cheaper to produce flat-screen televisions, which increased the supply of these televisions in the market. As supply increased, the price of flat-screen televisions decreased, making them more affordable to consumers.

New Technology Developed in 1999 Resulted in a Reduction in the Cost