Suppose the Number of Buyers in a Market Decreases and a Technological

question 104

Multiple Choice

Suppose the number of buyers in a market decreases and a technological advancement occurs also.What would we expect to happen in the market?

• A)Equilibrium price would decrease,but the impact on equilibrium quantity would be ambiguous.
• B)Equilibrium quantity would increase,but the impact on equilibrium price would be ambiguous.
• C)Equilibrium quantity would decrease,but the impact on equilibrium price would be ambiguous.
• D)None of the above is correct.

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Definitions:

Social Media Tactics

Specific methods and techniques used in social media marketing to achieve desired communication and business objectives.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefit (return) of an investment by its cost.

Profitability

The state of yielding financial profit or gain, an essential measure of a company's success.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision; a crucial concept in economics and decision-making.