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Which of the following will shift today's supply curve to the right?

a) Increase in production costs
b) Decrease in the number of producers
c) Improvement in technology
d) Increase in taxes on producers

User Kdbdallas
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1 Answer

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Final answer:

An improvement in technology that leads to reduced production costs is the factor that will shift the supply curve to the right, indicating an increase in supply. Option c.

Step-by-step explanation:

The student's question relates to the factors influencing a shift in the supply curve in an economic market. To identify which option will shift the supply curve to the right, we must consider actions that would increase the overall supply.

Among the provided options, an improvement in technology is the one that typically results in a decrease in the cost of production. This efficiency gain enables producers to offer more goods for less, thus leading to a rightward, or outward, shift in the supply curve.

An increase in production costs, decrease in the number of producers, and increase in taxes on producers would all have the opposite effect, potentially shifting the supply curve to the left by reducing the quantity of goods that producers are willing or able to supply at any given price.

Therefore, the correct answer is (c) Improvement in technology, which indicates an increase in supply and would be represented on a graph by a shift of the supply curve to the right.

User Deann
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