How does new technology influence the supply curve for a product?

New technology influences the supply curve for a product primarily by lowering costs and increasing supply. When new technology is introduced, it often allows firms to produce goods more efficiently. This means they can manufacture products at a lower cost due to improved processes, machinery, or methods. As production becomes more cost-effective, firms are typically able to offer more of the product at each price level, leading to a rightward shift in the supply curve.

This increased supply contributes to a greater availability of the product in the market, which can lead to lower prices, benefiting consumers. The impact of technology can also stimulate competition among firms, potentially leading to further innovations and additional cost reductions over time.