ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Technology is a factor of an aggregate supply curve. As it gets improved, the cost of production decreases, and production increases, causing an increase in the aggregate supply curve. It causes the price levels to fall and output levels to rise in an economy.

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: -Answer and Explanation: If there is a new breakthrough in manufacturing technology that reduces the cost of producing DVD players by half, the cost of producing DVD players decrease and this leads to an increase in the supply of DVD players.