There is a major technological advance in the process for producing bicycles.?
What happens to bicycle demand?
Answer:
Bikes would be cheaper to make, as an advance in production process means more produced given use of the same resources. Supply of bikes increases and the supply curve shifts.
The quantity demanded should increase, as you move along the demand curve related to a fall in price because of the increase in supply.
i am unaware of any such change having happen .
It depends on what the technological advance is, but bicycles are somewhat of a commodity unless you're talking about racing bikes.
Generally speaking, supply and demand likely won't be affected much... more realistically, manufacturers will reduce their costs and that'll be the end of it.
If this question is for a class, then the textbook answer is that supply and demand will increase proportionately. Unless the "technological advance" only affects the manufacturing process, in which case demand will only increase if costs are lowered.
Basically, bicycle is not very useful in this society
so, even the supply will shift to the right and the price will drop but it doesn't mean that the bicycle demand will increase.
because it is inelastic demand
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