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

question 359

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

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Definitions:

State of Tension

A psychological and physical condition resulting from the presence of stressors, leading to feelings of strain or pressure.

Incongruent

Not in harmony or keeping with the surroundings or other aspects of something; conflicting.

Just-World Hypothesis

The belief that the world is fundamentally fair, leading people to rationalize an individual's suffering as deserved.

Attributions

The process by which individuals explain the causes of behavior and events, either attributing them to internal dispositions or external situations.