Consider the markets for factors of production, such as labor and capital, to produce furniture in the United States before the invention of electric motors. In the late 19th century, commercially successful electric motors became available and enabled furniture and many other goods to be produced more efficiently.Assuming the cost of producing capital goods is unchanged, show how the availability of electric motor cars affected the market for capital in the United States on the following graph.
will the supply curve increase or decrease? same with the demand curve.