If Improvements in Technology Have Reduced the Cost of Producing

question 301

Multiple Choice

If improvements in technology have reduced the cost of producing personal computers, you accurately predict that in the market for personal computers, there will be a(n)

• A) increase in the quantity supplied of personal computers, a reduction in the price, and an increase in the quantity demanded.
• B) increase in the supply of personal computers, a decrease in the price, and an increase in the quantity demanded.
• C) increase in the supply of personal computers, a reduction in the price, and an increase in the demand.
• D) decrease in the supply of personal computers, an increase in the price, and a decrease in the demand.

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Definitions:

Macroeconomics

The study of economy-wide phenomena, including inflation, unemployment, and economic growth.

Consumption

The use of goods and services by households for personal needs or the process of using up resources or goods, leading to a decrease in their availability.

Investment Incentives

Investment incentives are benefits or policies designed to encourage businesses or individuals to invest in certain areas or sectors.

Interest Rate

Lenders require a payment, portrayed as a percentage of the principal, from borrowers for the use of their assets.