An improvement in production technology generally causes the supply curve to shift:

An improvement in production technology generally causes the supply curve to shift:

• A. Left
• B. Up along
• C. Right
• D. Down along

Answer: (C)

Improvements in production technology lower the cost of producing each unit and can increase how much can be produced overall. This means suppliers are willing and able to supply more at every price, so the entire supply curve shifts to the right. A shift to the right signals an increase in supply. Remember, moving along the curve (up or down) happens when the price changes, not when technology changes, and a leftward shift would indicate a decrease in supply.

Improvements in production technology lower the cost of producing each unit and can increase how much can be produced overall. This means suppliers are willing and able to supply more at every price, so the entire supply curve shifts to the right. A shift to the right signals an increase in supply. Remember, moving along the curve (up or down) happens when the price changes, not when technology changes, and a leftward shift would indicate a decrease in supply.