Technological innovation in the production of computers has led to
A) a decrease in the quantity demanded for computers.
B) a rightward shift of the supply curve for computers.
C) a decrease in the quantity supplied of computers.
D) None of the above.

Question

Quizplus · Accepted Answer

Technological innovation in the production of computers leads to lower costs of production, which leads to an increase in the supply of computers. This results in a rightward shift of the supply curve for computers, as sellers are willing and able to supply more at any given price. This should result in a lower equilibrium price and a higher equilibrium quantity.

Technological Innovation in the Production of Computers Has Led to