Suppose the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilisation of personal computers. Which of the following will happen to equilibrium price and equilibrium quantity?

Price will increase; quantity cannot be determined

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Price will decrease; quantity cannot be determined

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Quantity will increase; price cannot be determined

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Quantity will decrease; price cannot be determined

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Quantity will increase; price cannot be determined
When technology improves then supply increased and when individuals discovers new uses then demand increases and as a result of increase in supply and demand the quantity will increase but price can not be determined.

Suggest Corrections

Similar questions

Q. Supply being perfectly inelastic, what will be the effect of increase or decrease in demand on price and equilibrium quantity?

If the demand for a commodity increases and the supply decreases, what will be the effect on equilibrium price and quantity? Illustrate with diagrams.

Q. The Price of diesel increases by 25%. To what extent a person can reduce quantity of diesel consumption so that his budget is not upset?

Q. The quantity of goods a person is willing and can afford to buy at various prices is called .

The price of a computer was Rs 28,000. If the price is decreased by 10% then its new price will be:

Join BYJU'S Learning Program

Suppose the technology for producing personal computers improves and, at the same time, individuals discover new uses for personal computers so that there is greater utilisation of personal computers. Which of the following will happen to equilibrium price and equilibrium quantity?

The correct option is B Quantity will increase; price cannot be determinedWhen technology improves then supply increased and when individuals discovers new uses then demand increases and as a result of increase in supply and demand the quantity will increase but price can not be determined.

The correct option is B Quantity will increase; price cannot be determined
When technology improves then supply increased and when individuals discovers new uses then demand increases and as a result of increase in supply and demand the quantity will increase but price can not be determined.