Final answer:
On a production possibilities graph, an improvement in technology causes the line to move to the right as it increases the economy's productive capacity by reducing production costs and increasing supply.
Step-by-step explanation:
On a production possibilities graph, the line may move to the right due to improved technology.
This is because an improvement in technology typically leads to a reduction in the cost of production, which in turn increases the supply. The increased supply means that more goods can be produced at every price level, which is depicted as a rightward shift in the production possibilities curve. Unlike increased prices, higher labor costs or a shortage of resources, which could restrict production or increase costs, improved technology enhances productivity and efficiency, allowing for greater output.
Additionally, even though an increase in need can lead to a rightward shift in the demand curve, it is the technological improvement that directly impacts the production possibilities curve by expanding an economy's productive capacity, thus moving the curve to the right.