if-a-new-technology-reduces-production-costs-causing-the-supply-curve-to-shift-r

Question

If a new technology reduces production costs, causing the supply curve to shift right, what is the likely effect on the market?

Accepted Answer

Equilibrium price decreases, and equilibrium quantity increases.

Answer

Both equilibrium price and quantity decrease.

Answer

Both equilibrium price and quantity increase.

Answer

Equilibrium price increases, and equilibrium quantity decreases.