Suppose the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilization of personal computers. Which of the following statements/factors will happen to equilibrium price and equilibrium quantity?
A. Price will increase; quantity cannot be determined.
B. Price will decrease; quantity cannot be determined.
C. Quantity will increase; price cannot be determined.
D. Quantity will decrease; price cannot be determined.
Answer:C
Suppose the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilization of personal computers. Which of the following statements/factors will happen to equilibrium price and equilibrium quantity?
A. Price will increase; quantity cannot be determined. B. Price will decrease; quantity cannot be determined. C. Quantity will increase; price cannot be determined. D. Quantity will decrease; price cannot be determined.