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

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Quizplus · Accepted Answer

An improvement in technology typically increases supply (S) because it allows producers to produce more efficiently. This increase in supply leads to a decrease in the equilibrium price (P) and an increase in the equilibrium quantity (Q) of product X.

In the Following Question You Are Asked to Determine, Other