Final answer:
Introduction of new technology in the production of plasma televisions that results in fewer defects can lead to lower costs, reduced prices, increased demand, and possibly changes in global manufacturing locations.
Step-by-step explanation:
When new technology in the manufacture of plasma televisions leads to a significant reduction in the number of defective screens, it generally has the effect of reducing production costs. This decrease in production costs in a perfectly competitive market can lead to lower prices for consumers as manufacturers are able to be more cost-efficient and pass on some of the savings to customers. This, in turn, could stimulate demand for plasma televisions because they become more affordable. Additionally, with fewer defective products, consumer satisfaction might increase, potentially leading to a further increase in demand. As a result, the market would probably experience an expansion in supply and demand.
However, on a global scale, such advances in technology may also have the effect of shifting production to countries that can manufacture the product most efficiently. If production moves overseas due to these advancements, there could be a loss of jobs domestically in countries like the United States where flat-panel display production once occurred. This global competition could lead to a more dynamic international market for plasma televisions.