Question

Which of the following examples illustrates quantity supplied?

Select the correct answer below:
O Firm A's costs of production decreased, so it wants to sell more at any price.
O Technology improvement has made it cheaper to produce TV's so producers want to supply more.
O Firm B has to reduce production of watches and reinvest into producing jewelry which is more profitable.
O The price of houses has increased dramatically so more homeowners want to sell their house.

Answer 1

The correct example that illustrates quantity supplied is when technology improvement makes production cheaper, leading to increased supply.

Step-by-step explanation:

The correct example that illustrates quantity supplied is: Technology improvement has made it cheaper to produce TV's so producers want to supply more. When the cost of production decreases, producers are more willing and able to supply a larger quantity of a product at the given price. In this case, the improvement in technology has made it cheaper to produce TVs, leading to an increase in the quantity supplied by producers.

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