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

1815 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Discuss the view that nationalisation of the railway services in the UK would be beneficial for consumers.


The UK suffers from a persistent balance of trade deficit. what can the government do to rectify this and balance the trade figures?


With the help of a diagram, outline the long run effects of the coronavirus pandemic on the United Kingdom if there is no government intervention


What is Opportunity Cost?


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