The Development of New Technology Reduces the Cost of Producing

question 246

Multiple Choice

The development of new technology reduces the cost of producing calculators.In addition, assume that consumers have cut back on their scheduled purchases in anticipation of further cost-saving developments.As a result, we can expect

• A)a decrease in price but no predictable change in output.
• B)a decrease in output but no predictable change in price.
• C)an increase in output but no predictable change in price.
• D)a predictable decrease in both output and price.