U.S. Department
of Justice
Demand Curve With Two Upward-sloping Supply-cost Curves
| Graph representing the demand curve with two upward-sloping supply-cost curves. The first is labeled S, representing an original technology of supply, and the second is labeled S*, representing a new, more efficient technology of supply. S* is shifted "out," to the right of S, which causes the new competitive price to be lower. The graph demonstrates that with a new, more efficient technology of supply, the area labeled "consumer surplus" will increase. |
Updated July 5, 2024