A technological advancement has just occurred in the computer chip industry. In the computer chip market this will lead to
A)an increase in price and a decrease in quantity.
B)an increase in price and an increase in quantity.
C)a decrease in price and a decrease in quantity.
D)a decrease in price and an increase in quantity.

Question

Quizplus · Accepted Answer

With a technological advancement in the computer chip industry, the cost of producing each chip will decrease. As a result, the supply curve will shift to the right, leading to an increase in quantity. Additionally, the decreased cost of production will lead to a decrease in price as well. Therefore, the correct choice is D - a decrease in price and an increase in quantity.

A Technological Advancement Has Just Occurred in the Computer Chip