Question

How does supply and demand affect the development of technology?

Answer 1

Shifts in a supply curve are usually the result of advances in technology that reduce the input costs of production. Technological advances that improve production efficiency will shift a supply curve to the right. The cost of production goes down, and consumers will demand more of the product at lower prices.

Answer 2

Shifts in the supply curve are usually the result of technological advancements that lower production input costs. Technological advancements that increase the efficiency of production will cause a supply curve to shift to the right. Consumers will demand more of the product at lower prices as the cost of production falls.