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ECO 120 Cuyamaca College Technological Innovation Essay

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Help me study for my Economics class. I’m stuck and don’t understand.

Find the flaw in the following argument made by a business analyst: “A technological innovation that lowers the cost of producing a good seems at first to result in a reduction in the price of the good to consumers. But a fall in price will increase demand for the good thus sending the price up again”. Provide a short and precise precise answer!

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