Refer to the above table. If a technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price, the new equilibrium price would be:

Question

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With a 60 unit increase in quantity supplied at each price, the supply curve shifts to the right. This creates a new equilibrium at a lower price and a higher quantity. Looking at the table, the original equilibrium price was $13 and the quantity supplied was 120. If the quantity supplied increases by 60 units at every price, then the new equilibrium quantity will be 120 + 60 = 180. The new equilibrium price can be found by looking at the supply curve and finding the price where the quantity supplied is equal to 180. This occurs at a price of $12. Therefore, the new equilibrium price would be $12.

Refer to the Above Table