The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6

-When a new generation of computers, which are faster and more powerful than the previous generation, is introduced into the resource market:

Question

The following figures show the demand (D) and supply (S) curves of micro and macro economists.Figure 16.6
 
-When a new generation of computers, which are faster and more powerful than the previous generation, is introduced into the resource market:

Quizplus · Accepted Answer

The introduction of faster and more powerful computers will likely increase the productivity of firms, leading to an increase in their demand for capital. This is because capital (including computers) is a factor of production that can enhance output and efficiency. Thus, choice B is the best answer as it correctly predicts an increase in demand for capital.

The Following Figures Show the Demand (D) and Supply (S)