Question

A technological improvement in producing good A would cause: a. a movement upward and to the right along the supply curve for A. b. a shift to the right of the supply curve for A. c. a shift to the left of the supply curve for A. d. a movement downward and to the left along the supply curve for A.

Answer 1

The correct answer is letter "B": a shift to the right of the supply curve for A.

Step-by-step explanation:

According to the supply law, when the quantity supplied of a good increase, so will the price for that good. This will also cause that the supply curve shifts to the right. Then, technological improvements are likely to boost production which implies manufacturing more products, thus, increasing supply.

So, the introduction of technologies in the production of good A will shift the supply curve of A rightwards.