ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Improvement in technology reduces the cost of production per unit and increases the profit margin of producers. Hence the supply increases and shifts the curve to the right.

Detailed explanation-2: -Technological progress is an important determinant of supply of goods by a firm. Technological improvement tends to lower the cost of production since better technology facilitates higher output with the same inputs. Accordingly, the producer is willing to supply more at the existing 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.

Detailed explanation-5: -Increase in supply occurs when quantity supplied increases due to determinants other than own price of the concerned commodity. Eg: With improvement in technology or if input prices fall or subsidy is granted, production cost declines and more can be produced and supplied at the same price.