impact of Technology on Elasticity of Demand and S

[Beyond_instincts]

AOA
Dear friends i want to know something about the above mention topic..I searched a lot of web sites for the same but could not found information.. I need some information abnout following..

* What is the impact of \Technology on Elasticity of Demand and Supply..
* Any primary or Secondary source where i can find info abt this topic..
Regards.....Beeyond_instincts

[Nauman]

Depends on what type of technological improvement there is, as far as I remember the effect on elasticity of demand in negligent because technology has got little to do with the end customer though if technology means that there will be more alternatives ie. substitutes produced then in that case elasticity will increase. Elasticity of Supply will be effected as technology means that time lag in production and supply will reduce and hence the easticity will increase. You can find this information in any good Economic book, try Modern Economic Theory by K.K. Dewett.

Regards

[maani]

Technology reduces cost of production...new firms might enter the market...resulting in supply to become more inelastic...on the other hand with more substitutes available to customers the demand will become more elastic...