What is the impact of a technological advance in the production of smart phones
A)increase consumer surplus in the market for smart phones but decrease producer surplus in the market for software apps
B)increase consumer surplus in the market for smart phones and increase producer surplus in the market for software apps
C)decrease consumer surplus in the market for smart phones but increase producer surplus in the market for software apps
D)decrease consumer surplus in the market for smart phones and decrease producer surplus in the market for software apps

Question

Quizplus · Accepted Answer

A technological advance in the production of smartphones would likely result in increased consumer surplus as the new technology would likely lead to improvements in phone features and capabilities, such as improved cameras, faster processors, or longer battery life. As a result, consumers would be willing to pay more for the new phones, which would increase producer surplus in the market for smartphones. Additionally, the technological advance may lead to new opportunities for software app developers to create apps that utilize the new technology, which would increase producer surplus in the market for software apps. Therefore, both consumer and producer surplus would likely increase as a result of the technological advance in the production of smartphones.

What Is the Impact of a Technological Advance in the Production