Suppose That a Technological Advancement Substantially Reduces the Cost of Producing

question 89

Multiple Choice

Suppose that a technological advancement substantially reduces the cost of producing cheese.We would predict that the equilibrium quantity of cheese will ________ and the equilibrium price of cheese will ________.

• A) rise; rise
• B) rise; fall
• C) fall; rise
• D) fall; fall

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Definitions:

Discriminates

The ability to recognize and understand the difference between two or more stimuli or concepts.

Direct Contact

A method of communication or interaction involving physical presence or close proximity between individuals.

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Specific criteria set by institutions, organizations, or programs that individuals must meet or fulfill in order to qualify or be considered suitable for something.

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The way in which information is organized and transmitted between individuals and groups.