SOLVED: The cost of producing flat-screen TVs has fallen over the past decade. Let's consider some implications of this fact.a. Draw a supply-and-demand diagram to show the effect of falling production costs on the price andquantity of flat-screen TVs sold.b. In your diagram, show what happens to consumer surplus and producer surplus.c. Suppose the supply of flat-screen TVs is very elastic. Who benefits most from falling production costs-consumers or producers of these TVs?
SOLVED: The cost of producing flat-screen TVs has fallen over the pas…
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