Question: A scientist develops a new machine that lowers the cost of producing tires. Please show the effect supply will have with change in lower cost.

A scientist develops a new machine that lowers the cost of producing tires. Please show the effect supply will have with change in lower cost.

Instructions:

  1. Graph the change in the supply and demand curves.Show changes in price and quantity demand (increase, decrease, or indeterminate). Assume similar elasticities-slope steepness of supply and demand curves.

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