Question

If the level of technology used in the production of a good improves, and assuming the quality of the good does not change, then:

Answer 1

If the level of technology used in the production of a good improves, and assuming the quality of the good does not change, then: firms will produce greater amounts of good using the same quantity of resources. As a result, individual supply and market supply will increase. If market demand will be the same as before technology improvements, the equilibrium price of good will decrease and equilibrium quantity will increase.