ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Supply to Increase
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Demand to increase
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Supply to Decrease
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Demand to Decrease
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Detailed explanation-1: -Improvement in technology reduces the cost of production per unit and increases the profit margin of producers. Hence the supply increases and shifts the curve to the right.
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: -Effect of Technology on Supply The cost of production goes down, and consumers will demand more of the product at lower prices. Computers, televisions and photographic equipment are good examples of the effects of technology on a supply curve.
Detailed explanation-4: -AI, machine learning, human-machine interface, and IoT are some of the technological trends in the automobile sector. They strengthen the development and use of vehicles, including electric and driverless cars. Big data and analytics also help maintain and improve the safety of passengers and vehicles on the roads.
Detailed explanation-5: -a. Interest Rates. Lower interest rates ensure easy automobile financing; thus, providing higher sales. b. Disposable Income. c. Inflation. d. Gross Domestic Product. e. Exchange Rates. f. Unemployment Rate. g. Changing Consumer Trends. h. Demographic Shifts. More items •15-Feb-2021