When Technology Increases the Supply of a Good and Lower

question 31

Multiple Choice

When technology increases the supply of a good and lower prices increase the quantity demanded,

• A) the economy is reallocating resources to achieve an efficient allocation.
• B) consumer surplus falls.
• C) the invisible hand is unnecessary.
• D) the marginal benefit of the good increases with the quantity produced.
• E) the economy is no longer efficient because the quantity changes.

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Definitions:

Religious Men

Individuals, typically male, who are deeply committed to and involved in their religious faith or institution, often holding positions of leadership or authority.

Middle Class

A social group between the working class and upper class, often characterized by moderate income, education, and professional employment.

Rapid Growth

Rapid growth refers to a quick and significant increase in economic performance, population size, or development in a particular area or sector.

Industrialized Nation

A country whose economy is characterized by the large-scale use of industry and manufacturing technology, leading to high levels of income and development.