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 will lead to an increase in supply (S), as it will allow for more efficient and cheaper production of X. This increase in supply will lead to a decrease in the equilibrium price (P) of X as producers will need to lower their prices in order to sell the increased quantity (Q) of X. The equilibrium quantity (Q) of X will increase as a result of the increase in supply.

In the Following Question You Are Asked to Determine, Other