Question

New technology for mixing and freezing ice cream lowers manufacturers' costs of producing chocolate ice cream. As a result, the supply of chocolate ice cream will ___, which means the equilibrium price will ___ and the equilibrium quantity will ___.

Answer 1

Answer:

increase, reduce, increase

Explanation:

When a new technology reduces cost, the supply of chocolate increases because cost of production has been lowered. This means equilibrium price will go down because supply has increased. Equilibrium quantity will also increase due to increase in supply.