If a technological advance makes it possible to produce computers at a lower cost

Question

Quizplus · Accepted Answer

A decrease in production cost leads to an increase in the supply of computers as manufacturers can now produce more computers at the same cost as before, which may result in a lower price for consumers. This, in turn, may increase the demand for computers due to their more affordable prices. However, the primary effect is on the supply side, indicating that the answer is C.

If a Technological Advance Makes It Possible to Produce Computers