What Effects Will the Following Changes Have on the Price

question 2

Essay

What effects will the following changes have on the price and quantity traded of computers?
a)General population increases
b)New and better technology for producing computers is introduced
c)Income of the population increases
d)Wage for computer workers increase

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Definitions:

Average Costs

The cost per unit is determined by dividing the total production cost by the number of units manufactured.

Long Run

A period sufficient for all inputs to production, including physical capital, to be adjusted.

Shut-Down

A temporary or permanent cessation of operations in a business or factory, often due to financial difficulties or external factors.

Marginal Costs

The additional cost incurred from producing one more unit of a product or service.