Question

Producers of printersprinters expect the price of a factor of production used to produce a printer to fallprice of a factor of production used to produce a printer to fall and the number of firms producing and selling printersprinters to increaseincrease. you predict that the price of a printera printer will​ ______ and the quantity of printersprinters bought will​ ______.

Answer 1

Answer: Decrease, Increase

Step-by-step explanation: A fall in the price of inputs used to produce printers will decrease the cost of producing printers. This will induce producers to produce and supply more printers in the market. In addition, increase in the number of firms producing and selling printers will also increase supply of printers in the market. The supply curve for printers will shift down to the right. With demand for printers unchanged, this will lower the price of printers and increase the quantity of printers bought in the market.