8. The cost of many electronic devices has fallen appreciably since they were fi rst introduced.

For instance, computers, cell phones, microwaves, and calculators not only provide more functions but do so at a lower cost. Illustrate the impact of lower production costs on the supply curve. What happens to the size of the consumer and producer surplus? If consumer demand for cell phones is relatively elastic, who is likely to benefi t the most from the lower production costs?