There Is a Technological Improvement in the Production of Good

question 49

Multiple Choice

There is a technological improvement in the production of good X.As a result,the _____________ curve for good X will shift ____________ resulting in a(n) _____________ in the equilibrium price of X and a(n) ____________ in the equilibrium quantity of X.

• A) supply; rightward; decrease; increase.
• B) demand; leftward; decrease; decrease
• C) demand; rightward; increase; increase
• D) supply; leftward; increase; decrease
• E) supply; leftward; increase; increase

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Definitions:

Upward-Sloping

A description of a line or curve on a graph that indicates an increase in a variable as another variable increases.

Individual Demand Curve

Curve relating the quantity of a good that a single consumer will buy to its price.

Price-Consumption

Illustrates how a consumer's optimal consumption bundle changes in response to changes in the price of a good, holding all else constant.

Engel Curve

A graph showing the relationship between income and expenditure on a particular good, illustrating how spending changes as income changes.