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Is there such a thing as a typical demand curve for a new technology product? If so, what does it look like?
Is there such a thing as a typical demand curve for a new technology product? If so, what does it look like?
Expert Solution
A typical demand curve:
A typical demand curve in general looks like a downward sloping curve, which is convex to the origin and the curve does not touch both the axes.
With the introduction of new technology, the cost of production for firms now reduced that also decreases the market price too. The consumers are demanding more of the product at lower prices, which shifted the equilibrium market price towards down.
Therefore, the demand curve will not shift with this change.
We can conclude that with a new level of technology generally changes the supply curve and economic efficiency by providing a greater level of output.
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