ᴄʜᴀɴɢᴇs ɪɴ ᴍᴀʀᴋᴇᴛ ᴇǫᴜɪʟɪʙʀɪᴜᴍ

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defining characteristic of modern economy is 

technological progress

allow supplier to produce more at lower costs

Bovine Growth Hormone - allows dairy farmers

to increase milk production by 10-15%

externalities - subtler effects not immediately 

obviously from market analysis

supply curve shifts to right

new equilibrium - lower price, higher quantity

total surplus increase

consumer unambiguously better, ambiguous

effect on producer

at lower price, consumers purchase more

increase in sales increase producer surplus, but

lower price reduces surplus on quantity previously

sold

public effort to reduce smoking shift demand curve

to left

equilibrium - price and quantity both decrease