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In: Economics

Suppose that the current equilibrium price is $110 per software. A technological advance take place is...

Suppose that the current equilibrium price

is $110 per software. A technological advance take place is the software industry. Is this a

change in supply or demand? Describe what would be true in the market if, after this

development, the price remained at $110. Would this be an equilibrium price? Why or why not?

What would eventually happen in the market for software? What would happen to the

equilibrium price and quantity for software? Which quantity is affected and why? Illustrate

using a graph. What should happen in the market for software if retailers cut the price of

software (no graph needed here only and explanation)?

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