Fill in the blank!!

Many products, such as golf clubs, are made with graphite-epoxy resins because it's strong and lightweight. If a new technology reduced the cost of producing graphite-epoxy, then you'd expect _________ in the graphite-epoxy golf club market.

A. demand to decrease

B. supply to decrease

C. demand to increase

D. supply to increase

E. both supply and demand to increase

What do you think?! Thanks!! :)

Question

Fill in the blank!!

Many products, such as golf clubs, are made with graphite-epoxy resins because it's strong and lightweight. If a new technology reduced the cost of producing graphite-epoxy, then you'd expect _________ in the graphite-epoxy golf club market.

A.     demand to decrease

B.     supply to decrease

C.     demand to increase

D.     supply to increase

E.     both supply and demand to increase

What do you think?! Thanks!! :)

perl · Answer

do you have online notes on economics, im not familiar

anonymous · Answer

oh no i don't :(

anonymous · Answer

i'm a noob in economics sorry :(

anonymous · Answer

ah okay thanks though!

ganeshie8 · Answer

$\large \text{production cost}\downarrow  \text{supply}\uparrow$

anonymous · Answer

okay :) what about the demand though ? :O

ganeshie8 · Answer

yeah good q

anonymous · Answer

so supply increases for sure, but because it's cheaper, does that mean the demand would increase too since more people want to purchase? or no? @ganeshie8 ?

ganeshie8 · Answer

i think so, but im not so sure :O

ganeshie8 · Answer

supply increases for sure, 
demand can be a bit tricky

anonymous · Answer

ahh okay thank you! :D @ganeshie8 :)