Given a downward-sloping demand curve and an upward-sloping supply curve for a product,a technological innovation in making the product will:

Question

Quizplus · Accepted Answer

A technological innovation in making the product will shift the supply curve to the right, which leads to a decrease in the equilibrium price and an increase in equilibrium quantity. This is because the supply curve will intersect the demand curve at a new point with a lower price and a higher quantity. Therefore, the correct choice is C, which states that the equilibrium price will decrease, and equilibrium quantity will increase.

Given a Downward-Sloping Demand Curve and an Upward-Sloping Supply Curve