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Since the Demand Curve for Computer Chips Is Elastic, a Decrease

Question 49

Multiple Choice

Since the demand curve for computer chips is elastic, a decrease in the price of computer chips caused by an increase in productivity will _____ revenue for the computer chip industry and make computer chips a _____ share of the American economy.


A) increase; larger
B) increase; smaller
C) decrease; larger
D) decrease; smaller

Correct Answer:

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