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What happens to the supply and demand curve if new technology reduces the production cost of raw steel?
Wiki User
∙ 14y ago
The demand curve will remain unchanged. The supply curve will increase due manufacturers being able to produce more raw steel for the same price. As a result, demand for raw steel will decrease, therefore the price level decreases.
Wiki User
∙ 14y ago
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In what situations would the price of a good be most likely to decrease?
The development of a new energy source reduces production costs for a company.
What is the impact of technology to demand for goods and services?
The impact of demand for goods by technology actually lies within how it affects supply. Technology generally lowers the cost of production and increases efficiency, lowering unit costs for good production and thus increasing equilibrium demand. Additionally, secondary effects of technology may come from information: technology imparts information and dependency on those who use it, so they become used to new technology/methods and demand more of it in the future, discarding less efficient methods.
Why is the demand for labor referred to as a derived demand?
Derived demand results from a demand for increase in intermediates goods or production resulting from another demand resulting for final or intermediate goods. For example, a demand for an item can make its production increase, which makes its labor increase.
In which situation would the price of a good most likely increase?
A rise in demand happens to quickly for produces to increase production to keep up.
What is the between derived demand and joint demand?
Derived demand occurs when there is a change of customers' demand on particular product and produces have to buy new production equipment, which means that the change in consumer demand for a product affects demand for all firms involved in the production of that product. Joint demand has nothing to do with changing the production equipments. In this case, demand of the product depends on demand of its compliment. For example, demand on inc depends on demand on printers.
In what situations would the price of a good be most likely to decrease?
The development of a new energy source reduces production costs for a company.
A recession reduces consumer incomes What happens to Hamburger demand?
supply shifts in
What is the impact of technology to demand for goods and services?
The impact of demand for goods by technology actually lies within how it affects supply. Technology generally lowers the cost of production and increases efficiency, lowering unit costs for good production and thus increasing equilibrium demand. Additionally, secondary effects of technology may come from information: technology imparts information and dependency on those who use it, so they become used to new technology/methods and demand more of it in the future, discarding less efficient methods.
What do business do when there is increase in demand?
when there is an increase in demand the business increases their scale of production by supplyig more of a product in the market at a lower price.this not only helps them to earn profit but also reduces their cost of production because production is taking on a large scale and at a same time.higher profits means higher returns to the shareholder as well to the workers,employees and labourers.
Why is the demand for labor referred to as a derived demand?
Derived demand results from a demand for increase in intermediates goods or production resulting from another demand resulting for final or intermediate goods. For example, a demand for an item can make its production increase, which makes its labor increase.
In which situation would the price of a good most likely increase?
A rise in demand happens to quickly for produces to increase production to keep up.
What is the between derived demand and joint demand?
Derived demand occurs when there is a change of customers' demand on particular product and produces have to buy new production equipment, which means that the change in consumer demand for a product affects demand for all firms involved in the production of that product. Joint demand has nothing to do with changing the production equipments. In this case, demand of the product depends on demand of its compliment. For example, demand on inc depends on demand on printers.
What happens when there is too much demand for available goods and services?
When there is too much demand for available goods/services, there is a shortage. To meet this excess demand, firms increase production (at higher costs) until demand = supply. Thus, a shortage generally implies price is too low.
What factor influence a region photosynthetic productivity?
The main factor influencing production is consumer demand.
What is aggressive demand?
Aggressive demand is the storage, production and demand trends. This will influence the price of gas when winter is in.
What is Production rate and demand?
Production rate means that the rate at which production is carried. While demand is a quantity which a consumer is willing to buy at a specific price in a given period of time.
What happens when OPEC increases the the production of oil?
DOil prices drop.
