Technological advancements impact market equilibrium from "summary" of Business Cycles and Equilibrium by Fischer Black
Technological advancements have a significant impact on market equilibrium. When new technologies are introduced, they can disrupt the existing market dynamics by changing cost structures, production processes, and consumer preferences. These changes can lead to shifts in supply and demand, causing the market equilibrium to adjust accordingly. For example, the introduction of a more efficient production technology can lower production costs for firms. This may lead to an increase in supply, causing the equilibrium price to decrease. On the other hand, a new technology that enhances the quality of a product may increase consumer demand, leading to an increase in price and quantity demanded. In addition to changing supply and d...
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