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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 751 |
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In this situation, the below diagram be the good explaination:
The new technology help firms to produce more goods, so that the supply will increase but not to much, that still be considered as the same supply curve as before, because firms are price-takers (assumption 4). The red dot on the grap represents for the short run equilibrium which has the definition is ''The market price equates the quantity demanded to the total quantity supplied by the given number of firms in the industry, when each firm produces on its short-run supply curve'' (http://lse...
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The red dot on the grap represents for the short run equilibrium which has the definition is ''The market price equates the quantity demanded to the total quantity supplied by the given number of firms in the industry, when each firm produces on its short-run supply curve'' (http://lse.co.uk/financeglossary...
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