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OpenStudy (anonymous):
If a new lemon juicer is produced that is more efficient than human laborers, what will happen to supply of lemonade as a result?
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OpenStudy (anonymous):
The supply of lemonade will, ceteris paribus, increase. Since it is more efficient, the lemonade juicer will probably make more lemonade than humans at less cost. Therefore, more people will be willing and able to supply more lemonade. Since it's not due to the price, the supply curve will shift outwards (to the right) as more lemonade is produced. Hope this helps!!
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