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If There Is an Improvement in the Technology Used to Produce

question 186

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If there is an improvement in the technology used to produce a good, then the supply curve for that good will shift to the left.


Definitions:

Demand Elasticity

An indicator of the extent to which the demand for a product or service shifts as a result of variations in its price.

Locking in Customers

Refers to strategies used by companies to retain customers, often through the use of long-term contracts, proprietary technology, or loyalty programs.

Exclusive Government Contract

A legal agreement where a government grants only one company the right to provide goods or services, prohibiting competitors.

Acquire Patents

Process of obtaining legal rights to inventions or designs, ensuring exclusive use to the holder.

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