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If Technological Advances Lower the Cost of Computer Chips, in the Market

question 359

Multiple Choice

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will ________ and the equilibrium quantity will ________.


Definitions:

Utility Schedule

A table or graph that displays an individual's or group's satisfaction or utility levels derived from consuming different amounts of a good or service.

Candy Bars

Confectioneries usually consisting of some type of chocolate and other additives like nuts, caramel, nougat, or wafers, marketed as snacks or desserts.

Marginal Utility

The increased gratification obtained by a consumer from the consumption of one more unit of a good or service.

Total Utility

The total satisfaction or benefit received by consuming a particular quantity of goods or services.

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