When Technology Increases the Supply of a Good and Lower

question 125

Multiple Choice

When technology increases the supply of a good and lower prices increase the quantity demanded,

• A) the invisible hand is unnecessary.
• B) the economy is reallocating resources to achieve an efficient allocation.
• C) consumer surplus falls.
• D) the economy is no longer efficient because the quantity changes.
• E) the marginal benefit of the good increases with the quantity produced.

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