There Is a Technological Advance in the Production of Digital

question 290

Multiple Choice

There is a technological advance in the production of digital watches. This will cause:

• A) demand to increase.
• B) supply to increase.
• C) demand to decrease.
• D) supply to decrease.
• E) the price to increase.

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Definitions:

Excise Taxes

Taxes levied on the sale of specific goods and services, often included in the price of products like gasoline, alcohol, and tobacco.

Cigarettes

Small cylinders of finely cut tobacco leaves rolled in thin paper for smoking.

Tobacco Farming

The agricultural process of growing and harvesting tobacco leaves, which are then processed for use in products like cigarettes.

Perfectly Inelastic

A situation where the quantity demanded or supplied does not change in response to a change in price.