150k views
0 votes
Why does the adoption of new technology tend to increase supply?

User Sheilah
by
7.2k points

1 Answer

0 votes

Answer:

New technology allows firms to produce at a lower cost. As a result, as firms adopt a new technology, their cost curves shift downward. Market supply increases, and the market supply curve shifts rightward. With a given demand, the quantity produced increases and the price falls.

User Rueben
by
6.4k points