Assume a New Technology Further Reduces the Cost of Producing

question 67

Multiple Choice

Assume a new technology further reduces the cost of producing calculators.Also assume that consumers have cut back on their scheduled purchases in anticipation of even more cost-saving developments.As a result, we can expect

• A)a decrease in price but no predictable change in output.
• B)a decrease in output but no predictable change in price.
• C)an increase in output but no predictable change in price.
• D)a predictable decrease in both output and price.

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Definitions:

Participatory Process

A decision-making approach that involves input and active involvement from all stakeholders or group members.

Budgeting

The process of creating a plan to spend your money over a specified period, outlining projected income and expenses.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specified period, helping manage cash flow and liquidity.

Capital Expenditures Budget

A budget that outlines planned investments in long-term assets and projects, emphasizing spending on acquiring or upgrading physical assets.