Suppose the Number of Buyers in a Market Increases and a Technological

question 171

Multiple Choice

Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

• A)Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
• B)Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
• C)Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous.
• D)Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.

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Definitions:

Positive Concepts

Ideas or notions that are regarded as beneficial, good, or conducive to well-being.

Negative Ones

Referring to negative elements, factors, or outcomes that detract from desired states or objectives.

Evolutionary Theory

A set of principles explaining the process of natural selection and genetic variation leading to the evolution and diversification of organisms over time.

Prejudice

Preconceived opinion or judgment without just grounds or sufficient knowledge, often based on stereotypes.