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Solved: An increase in the number of buyers and a technological advance will cause a
Chapter 0, Problem 4(choose chapter or problem)
An increase in the number of buyers and a technological advance will cause a. demand to increase and supply to increase. b. demand to increase and supply to decrease. c. demand to decrease and supply to increase. d. demand to decrease and supply to decrease. e. no change in demand and an increase in supply.
Questions & Answers
QUESTION:
An increase in the number of buyers and a technological advance will cause a. demand to increase and supply to increase. b. demand to increase and supply to decrease. c. demand to decrease and supply to increase. d. demand to decrease and supply to decrease. e. no change in demand and an increase in supply.
ANSWER:Step 1 of 2
In free market perfect competition, there is free entry and exit for buyers and sellers of homogeneous commodities. Technological advancement occurs when there is improvement of product quality or cheaper mode of production. This helps in the transition of equilibrium resulting from adjusting market forces.