One of the largest changes in the economy over the past
several decades is that
technological advances have reduced the cost of making
computers.
5a) Draw a supply-and-demand diagram to show what
happened to price, quantity,
consumer surplus, and producer surplus in the market for
computers.
5b) Forty years ago, students used typewriters to
prepare papers for their classes; today
they use computers. Does that make computers and
typewriters complements or
substitutes? Use a supply-and-demand diagram to show
what happened...