Figure 4-16

-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

Figure 4-16
 
-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.

Quizplus · Accepted Answer

An improvement in technology for building houses will increase the efficiency of production and decrease the cost of producing each unit of output. As a result, the supply curve will shift to the right from S1 to S2, indicating that at the same price levels, more quantity will be supplied.

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