Assume in a simple example that a change occurs in an economy that produces “Good X”...

Assume in a simple example that a change occurs in an economy that produces “Good X” and that there is an increase in the technology used to produce “Good X”. Assume that this is a competitive market, what will happen to the equilibrium price and quantity of “Good X”? Use supply and demand analysis to demonstrate your answer and be sure to provide the rationale behind what is happening and also discuss any interesting observations or outcomes. Finally, please cite an example from the news of a current event in real life that relates to the economic change affecting “Good X” above, and be sure to explain why it relates. (Note: The magnitude of any supply and/or demand shifts in this example are not specified; you may want to consider the magnitude of any shifts in your analysis).

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Rahul Sunny answered 1 year ago

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