- CFA Exams
- CFA Level I Exam
- Topic 5. Financial Statement Analysis
- Learning Module 12. Introduction to Financial Statement Modeling
- Subject 5. The Forecast Horizon and Long-Term Forecasting
CFA Practice Question
Technological developments can shift supply curve to the _____, and/or demand curve to the ______.
B. right, left.
C. right, right.
A. left, right.
B. right, left.
C. right, right.
Correct Answer: B
Technological developments should result in more products supplied/consumed at the same or lower price.
User Contributed Comments 5
| User | Comment |
|---|---|
| ALOA123 | Why does it shift the demand curve left? if Tech advances cause product costs to decrease, than the consumer should have the same or more demand for the product? (i.e. consume same or more of the product at a lower price pt). More demand = Right shift... |
| akirchner1 | I agree with the supply curve shifting to the right. However, if the same price is used, then that means that the demand curve shifted to the right (more demand for more products). If a lower price is used, then that means that the demand curve shifted to the left (less demand). Less demand could means that there are substitute products available. I believe that more info is needed to determine where the demand curve moves in this question. |
| davidt876 | ^completely agree |
| ashish100 | Tech development ->at same price demand is lower. Or as my friend just explained to me, same output is demanded at lower at a lower price. |
| ashish100 | So b is correct |