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Supply and demand for wind turbines. The initial supply curve is S0, the initial demand curve is D0, and the initial equilibrium is E0. Then assume a technology is invented which decreases the production costs for wind turbines. Which point is most likely to be the new equilibrium for wind turbines?

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jepessoa

Answer:

Point D

Explanation:

A technological innovation that reduces the production cost of any good, will shift the supply curve to the right. This will lower the equilibrium and increase the equilibrium quantity.  

If the equilibrium quantity and price was originally E₀, then a rightward shift would move the equilibrium point to D.

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