ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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drive the costs of production down
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allows greater production even when other resources remain the same
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allows producers to provide more of a product than previously possible
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All these answers are true! orange+red+blue
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Detailed explanation-1: -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-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 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?
Detailed explanation-4: -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.