ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Demand will increase
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Demand will decrease
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Supply will increase
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Supply will decrease
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Detailed explanation-1: -New technology A technological improvement that reduces costs of production will shift supply to the right, causing a greater quantity to be produced at any given price.
Detailed explanation-2: -Technology leads to an increase in the efficiency of the production process which results in the shifting of the supply curve to the right. With decreasing cost of production more and more customers will be demanding the product. Also read: Price Elasticity of Supply.
Detailed explanation-3: -Answer and Explanation: An increase in production technology lowers the cost of production. This causes suppliers to increase the quantity supplied at every price. This means that the supply curve will shift right.
Detailed explanation-4: -New technology often has a positive effect on production because better equipment can produce more units per hour than outdated equipment. Quality may improve as well because a lot of technology has created machinery to be more precise during production.