In the Personal Computer Industry, the Reason for the Fall

question 37

Multiple Choice

In the personal computer industry, the reason for the fall in prices and the increase in quantity after 1980 was:

• A) mainly a function of resource prices.
• B) primarily due to technological change and an increase in the number of sellers.
• C) a result of a dramatic decrease in U.S.wages.
• D) a result of a dramatic decrease in foreign wages.

Analyze how the burden of a tax is divided between buyers and sellers, depending on market elasticity.

Identify the effect of government subsidies on market prices and economic welfare.

Evaluate scenarios to determine the most efficient tax policies for raising revenue with minimal excess burden.

Discuss the implications of minimum wage policies and their impact on employment and economic welfare.