A New Discovery Makes Ink Jet Computer Printers Less Expensive

question 47

Multiple Choice

A new discovery makes ink jet computer printers less expensive to produce. At the same time another type of computer printer, the laser printer, also becomes less expensive. What would you expect to happen to the equilibrium price and quantity of ink jet printers?

• A)Equilibrium price will rise, but the effect on quantity is uncertain.
• B)Equilibrium price will fall, but the effect on quantity is uncertain.
• C)Equilibrium quantity will rise, but the effect on price is uncertain.
• D)The answer cannot be determined from the information given above.

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Definitions:

Long-term Notes Payable

Loans or credit lines that are to be repaid over a period longer than one year.

Cash

Liquid assets comprising currency or currency equivalents that can be accessed immediately or near-immediately (as in the case of money market accounts).

Total Assets

The sum of all resources owned by a company, valued in terms of monetary units, which can be used to produce value for the company.

Business Transactions

Financial activities that impact a company's financial standing and are documented in its financial records.