ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a shift of the supply curve for that item to the left
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repeal of the subsidy for that item
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inelasticity of supply of that item
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a shift of the supply curve for that item to the right
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Detailed explanation-1: -Technology leads to an increase in the efficiency of the production process which results in the shifting of the supply curve to the right.
Detailed explanation-2: -Shifts in a supply curve are usually the result of advances in technology that reduce the input costs of production. 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.
Detailed explanation-3: -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-4: -When a new technique of production reduces the cost of production, the supply curve shifts to the right. 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. Was this answer helpful?