62 522
Assignments Done
98,7%
Successfully Done
In June 2018

Answer to Question #24579 in Microeconomics for saad

Question #24579
Silk must be extracted from silkworms. This process in the past was extremely difficult, requiring specialized and expensive machinery, but over time advances in research have produced better techniques. In the market for silk shirts the most likely effect would be:


A. P* up, Q* down


B. P* up, Q* up


C. P* down, Q* down


D. P* down, Q* up


E. A movement to the left along the supply curve.
Expert's answer
D. P* down, Q* up
Advances in technology often have the effect of lowering the costs of production, allowing suppliers to supply more goods at all prices. For example, the development of pesticides has reduced the amount of damage done to certain crops and therefore has reduced the cost of farming. The result has been an increase in the supply of these crops at all prices, which can be represented by a shift to the right in the supply curves for these crops

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions