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Assume a market starts in equilibrium and then there is a technological innovation that makes firms more productive. If the price were to remain at
Assume a market starts in equilibrium and then there is a technological innovation that makes firms more productive. If the price were to remain at the original equilibrium level, there would be a _____ and _____ pressure on the price.
a.
Shortage; upward.
b.
Surplus; upward.
c.
Surplus; downward.
d.
Shortage; downward.
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