question archive The cost of producing netbooks has fallen over the last decade
The cost of producing netbooks has fallen over the last decade
Subject:EconomicsPrice:2.88 Bought3
The cost of producing netbooks has fallen over the last decade. Please explain the following implications:
a) Draw a supply and a demand curve which explains the effect of falling production costs on the amount sold and the price changed?
b) Please explain what happens with the consumer and producer surplus?
c) Suppose the supply of netbooks is perfectly elastic. Please tell who benefits the most from falling production costs (consumers or producers)?
