How does technology affect supply and demand?

Open in App

Solution

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

Market Supply Curve

Market Equilibrium Applications

Features of Indifference Curve

Market Equilibrium

Learn about more questions and answers on business studies and various other commerce topics from our website.

Suggest Corrections

Similar questions

How are the equilibrium price and quantity affected when

(a) both demand and supply curves shift in the same direction?

(b) demand and supply curves shift in opposite directions?

How does market supply respond to an improvement in technology?

Join BYJU'S Learning Program