question consider an industry where new technology which significantly lowers the cost of production has…

question consider an industry where new technology which significantly lowers the cost of production has just been introduced. which of the following are consequences of this change in a market with a relatively inelastic demand compared to supply? note: select two answers that apply. select all that apply: the fall in production costs will increase supply. the lower costs of production will give a greater benefit to consumers than producers. the fall in production costs will decrease supply. the lower costs of production will give a greater benefit to producers than consumers.

question consider an industry where new technology which significantly lowers the cost of production has just been introduced. which of the following are consequences of this change in a market with a relatively inelastic demand compared to supply? note: select two answers that apply. select all that apply: the fall in production costs will increase supply. the lower costs of production will give a greater benefit to consumers than producers. the fall in production costs will decrease supply. the lower costs of production will give a greater benefit to producers than consumers.

Answer

Brief Explanations:

When production - cost falls due to new technology, producers are more willing to supply, so supply increases. In a market with relatively inelastic demand compared to supply, producers can capture more of the benefit from the cost - reduction as consumers are less responsive to price changes.

Answer:

The fall in production costs will increase supply. The lower costs of production will give a greater benefit to producers than consumers.