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Microeconomics Take Home Final However, changes in productivity of the digital audio industry can alter demand. The higher the productivity of a resource, the greater will be the demand allowing all firms to lower cost. The audio digital industry will depend on the amount of other resources in which it is associated. New technical advancements will increase the productivity of engineers, causing the demand curve to shift to the right for audio engineers. This new …

…With in a market economy, that has no incentives, we would see from the current economy a reduction in output, efficacy, and product quality. With out incentives people would have no drive to maximize their resources, making everyone average. With out the derive of demand market economies would not exist, the demand to produce a product will always be their. To even think that an economy with out incentives would exist is a ludicrous idea.