-Assume that Figure 4-16 shows the supply of new houses.An improvement in the technology for building houses will shift supply from A)S₁ to S₂. B)S₂ to S₁. C)S₃ to S₂. D)S₃ to S₁.

Question

Quizplus · Accepted Answer

An improvement in technology for building houses makes it cheaper and more efficient to produce houses, leading to an increase in supply. This is represented by a shift of the supply curve to the right, from an initial position (e.g., S₁) to a new position indicating a higher quantity of houses supplied at each price level (e.g., S₂).

-Assume That Figure 4-16 Shows the Supply of New Houses