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Expectations of short run effect

Most of the consumers and investors have learned via experience that ‘new’ high-tech equipment becomes outdated quickly, and that prices drop by roughly half annually. They adjust by delaying purchases, waiting for estimated higher quality and lower prices that has the short run effect of: (i) Decreasing the supply of computers. (ii) Decreasing the demand for digital equipment. (iii) Making shortages of stereo systems. (iv) Making surpluses of the conventional goods.

Find out the right answer from the above options.

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