Tom Gomez 

 October 6, 1986 

 Page -8- 



earlier a different type of shift may lead to a long-term increase 

 "rsis ; decrease in producer surplus. However, it is my opinion that a 

 pivotal shift is more representative. 



The previous discussion has been limited to technological change 

 which shifts the supply curve of a particular commodity. Technological 

 change which shifts demand, such as new product development or enhance- 

 ment! clearly shifts demand outward resulting in increased producer 

 surplus. 



I hope you find these comments useful. If you have questions, 

 please call. 



Sincerely, 



Myles J. Watts 

 Department Head 



MJW/ j Ih 



cc: William J. Tietz, President, MSU 



James R. Welsh, Dean of Agriculture, MSU 



