Suppose We Observe That Both the Equilibrium Price of Digital

question 360

Multiple Choice

Suppose we observe that both the equilibrium price of digital cameras and the equilibrium quantity of digital cameras have increased. Which of the following events could be responsible for this?

• A) technological advances in digital camera production
• B) workers who make digital cameras received a pay raise
• C) the price of film cameras fell
• D) consumers' preferences changed in favor of digital cameras

Analyze the effects of technological advancements on production efficiency and labor productivity.

Identify conditions indicating increasing, constant, or decreasing returns to scale in production.

Differentiate between perfect substitutability and fixed proportions in input usage based on isoquant shapes.

Understand the mechanisms and outcomes of muscle hypertrophy.