Explain the Short-Run and Long-Run Effects on Output and Prices

question 39

Essay

Explain the short-run and long-run effects on output and prices of technological improvements. Create a chart to demonstrate the effects.

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Definitions:

Convenience Goods

Products that are inexpensive and readily available, making them easy for consumers to buy frequently with minimal effort.

Consumer Staples

Essential products that consumers continue to demand regardless of economic conditions, such as food, beverages, and household goods.

Specialty Goods

High-value products that are unique or considered luxury items, often requiring a specific purchasing effort by consumers.

Cannibalized

When a new product or service significantly reduces the sales, market share, or demand of an existing product within the same company.