If someone invents a more cost effective way to produce frozen pizzas,then
A)The market supply curve for frozen pizzas will shift to the right.
B)The market supply curve for frozen pizzas will shift to the left.
C)There will be a movement up along the market supply curve for frozen pizzas.
D)There will be a movement down along the market supply curve for frozen pizzas.

Question

Quizplus · Accepted Answer

If the invention leads to a more cost effective way to produce frozen pizzas, it will lower the cost of production for the suppliers which will encourage them to increase their supply. As a result, the market supply curve for frozen pizzas will shift to the right, indicating a higher quantity of pizzas being supplied at every price level.

If Someone Invents a More Cost Effective Way to Produce