What is the impact of technological advances on a market?

Technological advances now mean that firms are able to produce more. This then increases supply, shifting the supply curve on the supply and demand diagram outward (to the right). As a result of this, market equilibrium also shifts to the right. This cause a decrease in prices, as supply has increased so consumers now have more choice in the market and can choose to purchase from cheaper firms. Furthermore, quantity demanded increases, as there is now more supply and the good/service is now cheaper.

JW
Answered by Jessica W. Economics tutor

1809 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is the opportunity cost of a good?


I'm unsure how to structure my essay, which way is the best?


Explain why the average and marginal revenue curves for a perfectly competitive firm are horizontal while those of a monopoly slope downwards.


Explain how government spending can lead to an increase in economic growth


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning