Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?

Question

Quizplus · Accepted Answer

An increase in the number of buyers would increase demand, pushing both price and quantity higher. A technological advancement typically increases supply, leading to a lower price but a higher quantity. The combined effect would unambiguously increase the equilibrium quantity, but the effect on price is ambiguous because the demand shift pushes price up while the supply shift pushes it down.

Suppose the Number of Buyers in a Market Increases and a Technological