Asked by Jallisa Jackson on Jul 21, 2024
Verified
Refer to Figure 4-31. Suppose there is an improvement in technology in this market and the price of lamps, a complementary good, increases. What changes do you predict in the equilibrium price and quantity?
Technology Improvement
The enhancement or development of new technologies or the improvement of existing technologies, which can lead to increased efficiency and productivity.
Complementary Good
A product or service that is typically used or consumed together with another good or service, increasing demand for one another.
Equilibrium Price
The price at which the quantity of a good supplied equals the quantity demanded, balancing the market.
- Anticipate market trends resulting from technological innovations or alterations in the costs of production.
- Ascertain the consequences of supplier market entry or departure and the variation in substitute commodities on equilibrium in the market.
Verified Answer
HZ
Learning Objectives
- Anticipate market trends resulting from technological innovations or alterations in the costs of production.
- Ascertain the consequences of supplier market entry or departure and the variation in substitute commodities on equilibrium in the market.