Question

What effect does a cost saving technical progress have on the supply curve? plssss answer i need it urgent with 10 pints pls answer

Answer 1

A cost saving technological progress reduces unit cost of production of a commodity. This will cause an increase in supply of a commodity and leads to a rightward shift of a supply curve as shown in the given diagram.

Step-by-step explanation:

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. ... At lower prices, consumers can purchase more TVs and computers, causing the supply curve to shift to the right.