Assume the Technology for Producing Personal Computers Improves And,at the Same

question 26

Multiple Choice

Assume the technology for producing personal computers improves and,at the same time,individuals discover new uses for personal computers so that there is greater utilization of personal computers.Which of the following will happen to equilibrium price and equilibrium quantity?

• A)Price will increase; quantity cannot be determined.
• B)Price will decrease; quantity cannot be determined.
• C)Quantity will increase; price cannot be determined.
• D)Quantity will decrease; price cannot be determined.

---

Definitions:

Capitalize

The accounting practice of recording a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense over time through depreciation or amortization.

Equity Securities

Financial instruments that represent ownership interest in a company, such as stocks.

Debt Securities

Financial instruments representing money borrowed that must be repaid, such as bonds, bills, or notes.

Model Business Corporation Act

A model set of laws prepared by legal experts to guide states in the development of their corporate statutes.