© 2009 Pearson Education, Inc. Publishing as Prentice Hall Principles of Economics 9e by Case, Fair and Oster
General Equilibrium Analysis
An Early Technological Advance: The Electronic Calculator
FIGURE 12.1 Cost Saving Technological Change in the Calculator Industry
In the 1970s and 1980s, major technological changes occurred in the calculator industry. In 1975, 18.1 million calculators were sold at an average price of $62.
As technology made it possible to produce at lower costs, cost curves shifted downward.
As new firms entered the industry and existing firms expanded, output rose and market price dropped. In 1983, 30.9 million calculators were produced and sold at an average price of under $30.