How do you think this has affected the market for computers? For computer software? For typewriters?

Question

Over the past 30 years, technological advances have reduced the cost of computer chips. How do you think this has affected the market for computers? For computer software? For typewriters?

Answer 1

technological advances in the market will reduce the cost of production and make the firms in the market more efficient, this will shift the supply curve to the right and the new equilibrium will be at a lower price and higher level of quantity.

Here, the older equilibrium was at A and after the curve shift to the right, the new equilibrium will be at point B.

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