When Technology Increases the Supply of a Good and Lower

question 31

Multiple Choice

When technology increases the supply of a good and lower prices increase the quantity demanded,

• A) the economy is reallocating resources to achieve an efficient allocation.
• B) consumer surplus falls.
• C) the invisible hand is unnecessary.
• D) the marginal benefit of the good increases with the quantity produced.
• E) the economy is no longer efficient because the quantity changes.

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Definitions:

Process

Process is a series of actions or steps taken to achieve a particular end, often involving progression through stages or phases.

Relationship

A connection, association, or involvement between two or more parties, whether personal, professional, or otherwise.

Topic

The subject or theme of a conversation, discussion, or area of inquiry.

Prospective Goals

Future-oriented objectives that an individual or group aims to achieve.