A technological advance in the production of computers will
A)increase consumer surplus in the market for computers and decrease producer surplus in the market for computer software.
B)increase consumer surplus in the market for computers and increase producer surplus in the market for computer software.
C)decrease consumer surplus in the market for computers and increase producer surplus in the market for computer software.
D)decrease consumer surplus in the market for computers and decrease producer surplus in the market for computer software.

Question

Quizplus · Accepted Answer

A technological advance in the production of computers will lead to lower costs of production, resulting in lower prices for consumers and higher profits for producers. This will increase consumer surplus in the market for computers and increase producer surplus in the market for computer software.

A Technological Advance in the Production of Computers Will