Sudden technological changes can have the effect of making?

A. a company’s management style ineffective
B. a company’s product obsolete
C. the control mechanism difficult to implement
D. the motivational factors in the company difficult to monitor

Correct Answer:

Option B – a company’s product obsolete

Explanation

Technological advances that improve production efficiency will shift a supply curve to the right. The cost of production goes down, and consumers will demand more of the product at lower prices. Computers, televisions and photographic equipment are good examples of the effects of technology on a supply curve. Changes in technology can affect the demand for different products or the demand for related products. It can increase the market for a product by increasing the demand for a new product and making an older product obsolete.