Suppose That, Prior to a Technological Change (Innovation) in an Industry

Multiple Choice

Suppose that, prior to a technological change (innovation) in an industry, at existing Factor prices, it takes 30 units of capital and 100 units of labor to produce 500 units of Good X. (Assume that capital and labor are the only two factors of production.) After the Innovation, it takes 25 units of capital and 50 units of labor to produce 500 units of good X (at the same factor prices as before the innovation) . In this situation, the technological
Change would be classified as a __________ technological change.

A) capital-saving
B) labor-saving
C) neutral
D) capital-saving and labor-saving