Is it possible for technological change to be negative? If so, give an example
What will be an ideal response?
Technological change could be negative, for instance, when a natural disaster hits, or when a firm hires less-experienced workers. In these cases, the firm would produce a lower level of output with the same inputs.
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The initial equilibrium price in the market for Web pages is $200 per page and 1000 Web pages are created in a month. Many new Web design firms now enter the market. As a result,
A) the supply of Web pages increases and the price falls. B) the supply curve of Web pages shifts leftward and the price falls. C) the demand for Web pages increases and the price rises. D) the supply of web pages increase and the price falls, which then increases the demand for Web pages and the demand curve shifts rightward. E) the demand for Web pages increases and the price falls.
Public goods legislation involves
a. widespread benefits and concentrated costs b. widespread benefits and widespread costs c. concentrated benefits and widespread costs d. concentrated benefits and costs e. regulating natural monopolies to avoid price gouging