ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Improved productivity and efficiency due to technological change, have a positive effect on the cost of production. More productivity means more output per input and more efficiency means that the output is achieved with less cost of production. Hence, the overall cost of production decreases.

Detailed explanation-3: -New technology often has a positive effect on production because better equipment can produce more units per hour than outdated equipment. Quality may improve as well because a lot of technology has created machinery to be more precise during production.

Detailed explanation-4: -Allows outsourcing Instead of hiring people to get the job done in your factory, you can simply outsource the work to contractors. Contractors can lower the cost of production. Companies can outsource minor work to other countries to save even more.