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What happens to the supply and demand curve if new technology reduces the production cost of raw steel?
The demand curve will remain unchanged. The supply curve will increase due manufacturers being able to produce more raw steel for the same price. As a result, demand for raw steel will decrease, therefore the price level decreases.
There is two types of increase for supply. 1) Movement along the demand curve (upwards or downwards) which is subjected to the shifting of the demand curve 2) Shift of the supply curve. For the first...