So changes in levels of technology are also going to affect the supply of a good. Generally, we're going to see technology only increasing, right? The availability of technology is usually only going up, so I've never seen a problem where technology decreases. I don't know, maybe like a Y2K problem or something, but the idea here is if technology increases, supply will increase, right? So this kind of goes hand in hand with the input prices. This just makes production more smooth, more efficient, so we’re going to be able to create more of the product, right? So, pretty much a simple idea here.

Let's look at some examples of technology increases. We've got wireless technology emerging, right, so we've seen that in recent years. The Industrial Revolution was a huge increase in productivity based on new technology. And how about one more, movie rental. The movie rental industry saw a great change in technology when Netflix emerged. It totally changed the supply of being able to rent movies. Before, we had to go to a Blockbuster, go to a store, and pick out a movie. Now, all the movies were available online or at least a really good selection of movies available online through these streaming services, right? So, these basically expanded the supply based on the technology increases. Cool. Pretty simple one. Let's go ahead and do an example.