Over the past 40 years, technological advances have reduced the cost of computer chips. This has led to ___ in the supply of computers, causing the price of computers to _. Because computers and computer software are _ , this change in price causes the demand for computer software to_. However, computers and typewriters are _ , so the charge in the price of computers ___ the demand for typewriters.

Question

08-01-2021
Business

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Over the past 40 years, technological advances have reduced the cost of computer chips. This has led to ___ in the supply of computers, causing the price of computers to _. Because computers and computer software are _ , this change in price causes the demand for computer software to_. However, computers and typewriters are _ , so the charge in the price of computers ___ the demand for typewriters.

Sagot :

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ewomazinoade ewomazinoade · Answer 1 · 2021-01-08T19:14:13-05:00

Answer:

an increase

fall

complements

increase

substitutes

reduces

Explanation:

computer chips are inputs used in the production of computers. If the cost of computer chips decreases, the cost of making computers reduces. This would increase the supply of computers.

When supply exceeds demand, price falls

Complement goods are goods used or consumed together. computers and computer software are complement goods. Due to the rise in computers, the demand for computer software would increase also.

Substitute goods are goods that can be used in place of other goods. Computers and typewriters are substitutes. Since the demand for computers have increased due to the fall in price of computer chips, less typewriters would be demanded for .

Sagot :

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