One of the Implications of Price Elasticity of Technology Products

question 2

Multiple Choice

One of the implications of price elasticity of technology products is that:

• A) the cost of a semiconductor chip fabrication plant doubles every four years.
• B) the magnetic disk areal storage density doubles annually.
• C) customers not only buy more products as they become cheaper, but whole new markets employing new technology open up.
• D) the value of chips in semiconductor-based devices appreciates every six months.
• E) firms stock up on tech products and sell them once their prices increase.