In: Economics
Over the past 30 years, technological advances have reduced the cost of computer chips. How do you think this has affected the market for computers? For computer software? For typewriters?
technological advances in the
market will reduce the cost of production and make the firms in the
market more efficient, this will shift the supply curve to the
right and the new equilibrium will be at a lower price and higher
level of quantity.
Here, the older equilibrium was at A and after the curve shift to the right, the new equilibrium will be at point B.