A technological advancement has just occurred in the phone camera industry. In the computer chip market this will lead to
A) an increase in price and a decrease in quantity.
B) an increase in price and an increase in quantity.
C) a decrease in price and a decrease in quantity.
D) a decrease in price and an increase in quantity.

Question

Quizplus · Accepted Answer

A technological advancement in the phone camera industry would likely lead to an increase in demand for computer chips used in the cameras. However, advancements in technology often lead to cost savings and efficiency gains in the production process, which could lead to a decrease in price for computer chips. This decrease in production costs and potential increase in demand would likely result in an increase in quantity supplied, leading to a decrease in price and an increase in quantity.

A Technological Advancement Has Just Occurred in the Phone Camera