Technological progress has reduced the cost of manufacturing MP3 players. What happens if demand is unchanged?

More MP3 players will be sold at a lower price.

Fewer MP3 players will be sold at a higher price.

More MP3 players will be sold at a higher price.

Fewer MP3 players will be sold at a higher price.

Question

Amari Schaefer

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2 November, 08:56

Technological progress has reduced the cost of manufacturing MP3 players. What happens if demand is unchanged?

More MP3 players will be sold at a lower price.

Fewer MP3 players will be sold at a higher price.

More MP3 players will be sold at a higher price.

Fewer MP3 players will be sold at a higher price.

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Answers (1)

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Prince Chavez · Answer 1

The correct answer is More MP3 players will be sold at a lower price.

Demand not changing means that the same amount of mp3 players would be sold, and since they would be cheaper to make then they would also be cheaper to sell. However, this works in an ideal situation, while in reality the manufacturers would just keep the price the same and wouldn't notify anyone that production costs were lowered, so they would earn even more.