A new discovery makes ink jet computer printers less expensive to produce. At the same time another type of computer printer, the laser printer, also becomes less expensive. What would you expect to happen to the equilibrium price and quantity of ink jet printers?

Question

Quizplus · Accepted Answer

If both ink jet and laser printers become less expensive to produce, there will likely be an increase in supply for both types of printers. This increased supply could lead to a decrease in the equilibrium price of ink jet printers, but the effect on quantity is uncertain and would depend on the magnitude of the increase in supply compared to any changes in demand.

A New Discovery Makes Ink Jet Computer Printers Less Expensive