Other Things Being Equal, How Would the Market for Tablet

question 167

Multiple Choice

Other things being equal, how would the market for tablet computers be affected by a large increase in productivity in the tablet-computer industry?

• A)a decrease in price and a leftward movement along the supply curve
• B)a decrease in price and a rightward movement along the demand curve
• C)a decrease in price and a rightward movement along the supply curve
• D)an increase in price and a rightward movement along the demand curve

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Definitions:

Horizontal Axis

The x-axis in a graph, typically representing the independent variable or the quantity of interest.

Production Possibilities

A theoretical model depicting the various combinations of goods and services an economy can produce, given its available resources and technology.

Capital Goods

Capital goods are tangible assets such as buildings, machinery, and equipment that a business uses to produce goods or services.

Marginal Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen, especially in the context of resource allocation.