The development of new technology reduces the cost of producing calculators. In addition, assume that consumers have cut back on their scheduled purchases in anticipation of further cost-saving developments. As a result, we can expect

A. a decrease in price but no predictable change in output.
B. a decrease in output but no predictable change in price.
C. an increase in output but no predictable change in price.
D. a predictable decrease in both output and price.


Answer: A

Economics

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