Answer
The computer supply curve will shift to the right. The equilibrium price will fall and the equilibrium quantity rises.
The software equilibrium price and quantity will rise.
The equilibrium price and quantity for typewriters will eventually decrease.
Work Step by Step
Technological advances reduced the cost of producing computer chips this means a decline in an input price to produce a computer. As a result of this, computer software is also affected due to is considered as a complement for computers. However, typewriters are considered substitutes for computers.
