Question

Please answer the following question. Specific subject: MICROECONOMICS

#5 – Over the past 30 years, technological advances have reduced the cost of computer chips. How do you think this has affected the market for computers? For computer software? For typewriters?

Answer 1

Over 30 years many changes can be seen in computer industry. IC chip was one of the important invention of computer history. After introduction of chips their are many changes can be seen. With invention of chips micro computers are really now, chip reduced the size and price of computer. It affects Market positively and make computer accessible to common man. When computer became feasible to everyone, it's availability and demand started to increase. The demand of computer increases production of computer also increases, new production units were started. With increased demand producer start to produce more. The production of extra computers created extra employment to the works.

So with the invention of chip it increases demand and production both which affected economy positively,