Question

to $7 O. The price of O The price of peanut butter increases to $7 because of a demand shift O The price of peanut butter decreases to $4 because of a supply shift Question 31 2 pts After a new technology is introduced, the price typically falls. What is a possible explanation for G More people purchase the product and more firms produce the product o Fewer people purchase the product O More people purchase the product. O Fewer people purchase the product and fewer firms produce the product O More firms produce the product

Answer 1

Option E

• When a new technology is introduced the firms find it easier to produce more goods and services.
• Introduction of newer technology will increase the competition among the firms and more firms will produce the product.
• With increase in the production of a product by many firms, the supply of that product Increases.
• When the supply Increases , the quantity also increases which will in turn decreases the price of that product.