If Technological Advances Lower the Cost of Computer Chips, in the Market

question 43

Multiple Choice

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will __________and the equilibrium quantity will __________.

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

---

Definitions:

Solar City

A city or urban area that predominantly uses solar energy to meet its energy needs, often through widespread installation of solar panels.

Behavioral Economics

A field of economics that analyzes how psychological, cognitive, emotional, cultural, and social factors affect economic decisions.

Nudge

A concept in behavioral economics suggesting a way to influence people's behavior and decision making subtly without limiting their choices.

Hedonic Treadmill

A theory suggesting that people continually seek higher levels of wealth, status, or possessions but do not achieve lasting increases in happiness.