Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products (that is, the quantity supplied at each price is twice what it was).

When there is a technological advance that doubles the supply of both pharmaceutical drugs and computers, the impact on their demand can be analyzed considering their elasticity of demand.

1. Pharmaceutical drugs:
- Given that pharmaceutical drugs have an inelastic demand, a doubling of supply will not have a significant impact on the demand for these drugs.
- Inelastic demand means that changes in price have a relatively small effect on the quantity demanded. Therefore, even with an increased supply, the demand for pharmaceutical drugs will remain largely unchanged.
- Consumers generally require these drugs to treat specific illnesses or conditions, and their demand is not affected by price changes to a great extent.

2. Computers:
- Computers, on the other hand, have an elastic demand, meaning that changes in price have a significant impact on the quantity demanded.
- When the supply of computers doubles due to technological advancement, it is likely that the price of computers will decrease.
- The decrease in price, coupled with an elastic demand, would lead to an increase in the quantity demanded of computers.
- Consumers are more sensitive to price changes when it comes to purchasing computers, and with a lower price, the demand for computers would rise.

In summary, the impact of a technological advance that doubles the supply of pharmaceutical drugs is minimal due to the inelastic demand, whereas for computers, the impact is more significant as the elastic demand leads to an increased quantity demanded with a decrease in price.

To determine how the change in supply would impact the demand for pharmaceutical drugs and computers, we need to understand the concept of elasticity.

Elasticity measures the responsiveness of demand or supply to changes in price or quantity. An elastic demand or supply means that the quantity demanded or supplied is highly responsive to changes in price, while an inelastic demand or supply indicates a less responsive relationship.

In your scenario, you mentioned that pharmaceutical drugs have an inelastic demand, while computers have an elastic demand. Let's explore how an increase in supply would affect the demand for both products:

1. Pharmaceutical Drugs (inelastic demand):
- Inelastic demand implies that quantity demanded is not strongly influenced by price changes.
- When the supply of pharmaceutical drugs doubles, it means that the market will have more drugs available at each price level.
- Since the demand for pharmaceutical drugs is inelastic, the increase in supply will not result in a significant change in the quantity demanded.
- In other words, the demand for pharmaceutical drugs will remain relatively stable despite the increased supply.

2. Computers (elastic demand):
- Elastic demand indicates that quantity demanded is highly responsive to price changes.
- When the supply of computers doubles due to technological advancement, there will be a larger quantity of computers available in the market at each price.
- With an elastic demand, consumers are more price-sensitive, and the increased supply would likely lead to a decrease in the price of computers.
- As the price decreases, the quantity demanded for computers is expected to increase, potentially resulting in a significant rise in the number of computers purchased.

Therefore, the impact of the technological advance that doubles the supply of both pharmaceutical drugs and computers will differ based on the elasticity of demand. While the demand for pharmaceutical drugs remains relatively unaffected due to inelasticity, the demand for computers is expected to increase significantly because of their elastic demand.

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