If the coffee shops began using a machine that reduced the amount of labor necessary to produce them then the equilibrium price of the lattes would decrease, and the equilibrium quantity of lattes would increase.
Production of lattes requires a quite amount of labor but, when coffee machines are used for the production of lattes, it will increase the production of lattes. Therefore when machines are used the production of lattes increases which inturn will lead to an increase in the supply of the lattes. By this the cost of producing lattes will decrease because of lower use of labor, the supply of latte production will also increase. By this, the supply curve for latte production will be shifted towards right which will lead to a decrease in the price of lattes and an increase in the quantity of lattes.
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