Topic: Changes in Supply, Demand, and Equilibrium In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product
X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X.An improvement in the technology used to produce X will

Question

Quizplus · Accepted Answer

An improvement in technology typically increases supply because it allows producers to produce more efficiently. This increase in supply leads to a decrease in equilibrium price and an increase in equilibrium quantity.

Topic: Changes in Supply, Demand, and Equilibrium in the Following