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. Refer to the given information.An improvement in the technology used to produce X will:

Question

Quizplus · Accepted Answer

An improvement in technology used to produce a product typically makes production more efficient, leading to an increase in supply (S) as producers can make more of the product at a lower cost. This increase in supply, with demand remaining constant, tends to decrease the equilibrium price (P) because there is more of the product available. As the price decreases, the quantity (Q) demanded by consumers typically increases, leading to an increase in the equilibrium quantity.

In the Following Question You Are Asked to Determine,other Things