If a technological improvement took place in the computer industry, we would expect the equilibrium price of computers to

Question

Quizplus · Accepted Answer

When a technological improvement takes place in the computer industry, it reduces the cost of producing computers, causing the supply of computers to increase. This will lead to a decrease in the equilibrium price and an increase in the quantity of computers sold as demand for computers rises due to the lower price. Therefore, the best choice is B as it describes a decrease in price and an increase in quantity.

If a Technological Improvement Took Place in the Computer Industry