In 1975 a pocket calculator cost more than $50; in 1990 a calculator of the same quality cost less than $10 . Which of the following explanations is most consistent with these facts?
a. Intense competition in the calculator industry caused the supply curve for calculators to shift to the left, depressing the price.
b. An increase in the demand for calculators led to the price drop
c. An improvement in technology caused the supply of calculators to increase, depressing their price.
d. As the population grew, fewer expensive calculators were needed, causing prices to fall.
c
Economics
You might also like to view...
The larger the value of U.S. imports, the greater the quantity of ________ causing the quantity supplied of dollars to ________
A) U.S. dollars demanded; increase B) U.S. dollars demanded; decrease C) foreign currency demanded; increase D) foreign currency demanded; decrease
Economics
Refer to the diagram, where variable inputs of labor are being added to a constant amount of property resources. Marginal cost will be at a minimum for this firm when it is hiring:
A. Q 3 workers.
B. Q 2 workers.
C. Q 1 workers.
D. more than Q 3 workers.
Economics