You are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product Xupon (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 above.An improvement in the technology used to produce X will:

Question

Quizplus · Accepted Answer

An improvement in technology would increase the efficiency of production, leading to a decrease in production costs. This would result in an increase in supply (S), as more units of product X can be produced at a lower cost. The increased supply would cause a decrease in equilibrium price (P) and an increase in equilibrium quantity (Q), as producers would be willing to offer more units of X at a lower price. Therefore, choice C is the correct answer.

You Are Asked to Determine, Other Things Equal, the Effects