The introduction of a cost-saving technology at the espresso bar causes the price of an espresso to
A) fall, and demand decreases.
B) fall, and quantity demanded increases.
C) fall, and quantity demanded decreases.
D) rise, and quantity demanded decreases.
E) rise, and quantity demanded increases.

Question

Quizplus · Accepted Answer

When a cost-saving technology is introduced, it reduces the cost of production for the espresso bar. As a result, the supply curve of espresso shifts to the right, leading to a decrease in price and an increase in quantity demanded, following the law of supply and demand. So option B is the correct answer.

The Introduction of a Cost-Saving Technology at the Espresso Bar