ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Left; price went down
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Right; there was a change in the number of producers
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Left; Productive technology improved
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Right; Better technology and probably lower production costs
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Detailed explanation-1: -Due to the evolution of new technology, the rates of assembling furniture get increased. This enrages the average cost of assembling furniture. As a result, the profit margins of assembling furniture get decline.
Detailed explanation-2: -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-3: -Improvement in the technology of production of a firm causes a supply curve to shift towards the right because of the reduced costs or increased efficiency of production.
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.
Detailed explanation-5: -It is a false statement. A change in technology causes the rightward shifts in the supply curve and there is no change in the demand curve. It represents a decrease in price and an increase in quantity because of an increase in the supply curve.