After a new technology is introduced, the price typically falls. what is a possible explanation for this?
a. more people purchase the product and more firms produce the product.
b. fewer people purchase the product and fewer firms produce the product.
c. more firms produce the product.
d. more people purchase the product.
e. fewer people purchase the product.

Option (C) is correct.

Explanation:

If there is an advancement of technology, then as a result the cost of production of the firms decreases and hence there is an increase in the quantity of output produced.

This will also reduce the price of the products because of the lower cost of production. Lower cost of production because of the introduction of new technology which induces new firms to produce the products and make profits form selling the product.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.