As a result of a technology advance in the production of your firm's product, you should anticipate a________ price for your product than the current equilibrium price and a _________ equilibrium quantity than the current equilibrium quantity.

Question

Quizplus · Accepted Answer

If there is a technology advance in production, it means that the production process has become more efficient and less costly. As a result, the cost of producing the product decreases. This allows the firm to lower the price of the product while still making a profit. A lower price will increase the demand for the product, resulting in a higher equilibrium quantity. Therefore, the correct answer is a lower price (than the current equilibrium price) and a higher equilibrium quantity (than the current equilibrium quantity).

As a Result of a Technology Advance in the Production