It could be said that the consequence of a technological innovation that decreases the production cost...
It could be said that the consequence of a technological innovation that decreases the production cost of a good and causes a lower equilibrium price, in the end would have an impact of increasing the price because it would induce an increase in demand?
Answer TRUE OR FALSE
Homework Answers
It is True.
As the consequence of technological innovation decreases the cost of production then the supply curve will shift rightward thus causing a lower equilibrium price.
As the prices get reduced, the demand of the good gets increased thus increases the prices of the same good in future.
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