If a technological improvement took place in the computer industry, we would expect to see the equilibrium price of computers to
A)increase and the quantity of computers sold to decrease.
B)decrease and the quantity of computers sold to increase.
C)decrease and the quantity of computers sold to decrease.
D)increase and the quantity of computers sold to increase.
E)increase and the quantity of computers sold to stay the same.

Question

Quizplus · Accepted Answer

An improvement in technology would lower the cost of producing computers, which would shift the supply curve to the right. This would lead to a decrease in the equilibrium price and an increase in the quantity of computers sold.

If a Technological Improvement Took Place in the Computer Industry