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After a new technology is introduced, the price typically falls. What is a possible explanation for this?
a.More people purchase the product and more firms produce the product.
b.Fewer people purchase the product and fewer firms produce the product.
c.More firms produce the product.
d.More people purchase the product.
e.Fewer people purchase the product.

Respuesta :

Answer:

Option (C) is correct.

Explanation:

If there is an advancement of technology, then as a result the cost of production of the firms decreases and hence there is an increase in the quantity of output produced.

This will also reduce the price of the products because of the lower cost of production. Lower cost of production because of the introduction of new technology which induces new firms to produce the products and make profits form selling the product.