Answer to Question #275475 in Microeconomics for @x@x@x@x

Question

c) What will happen to the equilibrium quantity and equilibrium price of renewable energy resources if energy sector improves the technology? (Graph is not required)

Answer 1

If the the technology improves then it the reliability and the use of the product will increase which leads to the increase in the demand of the product due to which the price will also increase. So the graph will be as per the below -