How to draw a diagram of what actually happens


A technological innovation that lowers the cost of producing a good might seem at first to result in a reduction in the price of the good to consumers. But a fall in the price will increase demand for the good, and higher demand will send the price up again. It is not certain, therefore, that an innovation will really reduce price in the end."

What is wrong with this statement, and how to draw a diagram of what actually happens.

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Microeconomics: How to draw a diagram of what actually happens
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