The Increased Technological Sophistication of Consumer Goods Would Tend to

question 154

Multiple Choice

The increased technological sophistication of consumer goods would tend to

• A) shift the marginal cost of information curve to the right.
• B) shift the marginal cost of information curve to the left.
• C) shift the marginal benefit of information curve to the right.
• D) shift the marginal benefit of information curve to the left.
• E) have no effect on the marginal cost or marginal benefit of information.

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Definitions:

Market Price

The prevailing rate at which a good or service is available for purchase or sale in the public market.

Inelastic

A characteristic of demand or supply that signifies a limited response to changes in prices or other economic factors.

Unit Elastic

A situation where a percentage change in the price of a good results in an equal percentage change in the quantity demanded.

Inelastic

Describes a situation where the demand or supply for a good or service is not significantly altered when the price changes.