Which of the Following Will Most Likely Decrease the Current

question 3

Multiple Choice

Which of the following will most likely decrease the current price of personal computers?

• A) a technological advance that decreases the production costs of personal computers
• B) an increase in consumer income
• C) development of new software that makes it easier for more people to use personal computers
• D) the expectation that the price of personal computers will increase during the next six months

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Definitions:

High-End

Products or services that are considered to be of the highest quality and price within their category.

Efficiency-Wage Theories

Economic theories that suggest higher wages can increase worker productivity and efficiency, thereby justifying above-equilibrium wage rates.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded, resulting in a stable employment situation without surpluses or shortages.

Efficiency Wage

is the concept that paying workers a higher wage than the market equilibrium can lead to higher productivity and efficiency, incentivizing better performance and loyalty.