Because of better technology, the cost of producing televisions has fallen significantly this century.

Using a supply and demand diagram, show the effect this has had on the equilibrium price and output in the television market. Assume the television market is perfectly competitive.

Using the diagram, do welfare analysis to show how much better off or worse off consumers, producers and the nation as whole are when the production costs of televisions fall. (Assume no externalities). You may find it helpful to assign letters (A, B, C, etc) to refer to areas on your diagram.