Economic

Supply of fans

This graph shows how supply changes. The shifter that makes the supply change in this situation is technology. The technology decreases because of the big tsunami. Look at the equilibrium to new equilibrium and compare both of them. When you look to the equilibrium point the price of the fan $20 and the quantity sold are 350 fan. If you look to the new equilibrium point the price is $40 and quantity sold are 200 fan. So it mean when that new bad technology produce less fan the price of the fan will increase up to $40 per 200 fan.

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