Question

What is the probable impact on supply when a technological breakthrough significantly reduces the time required to produce a certain product?

A Supply decreases due to reduced time. Correct Answer Incorrect Answer
B Supply increases due to reduced time Correct Answer Incorrect Answer
C Supply remains unchanged Correct Answer Incorrect Answer
D Supply decreases due to technological advancements Correct Answer Incorrect Answer

Solution

A technological breakthrough reducing production time generally enhances efficiency, encouraging producers to supply more of the product at any given price, thereby increasing overall supply.

Practice Next
×
×