ECONOMICS
SUPPLY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
There will be an increase in S
|
|
|
There will be a decrease in S
|
|
|
There will be an increase in QS
|
|
|
There will be a decrease in QS
|
|
|
There will be a change in Demand-so supply is unaffected
|
Detailed explanation-1: -Answer and Explanation: If a new robot increases the efficiency in the production of cars, this translates to a decrease in the cost of producing cars. As a result, more cars will be produced, the supply for cars will increase and the supply curve will shift to the right.
Detailed explanation-2: -New technology A technological improvement that reduces costs of production will shift supply to the right, causing a greater quantity to be produced at any given price.
Detailed explanation-3: -Technology leads to an increase in the efficiency of the production process which results in the shifting of the supply curve to the right. With decreasing cost of production more and more customers will be demanding the product. Also read: Price Elasticity of Supply.
Detailed explanation-4: -Technological advances that improve production efficiency will shift a supply curve to the right. The cost of production goes down, and consumers will demand more of the product at lower prices. Computers, televisions and photographic equipment are good examples of the effects of technology on a supply curve.