Cost-reducing technological advancements allow suppliers to earn more profits but have no noticeable effect on the supply curve.

Question

Quizplus · Accepted Answer

Cost-reducing technological advancements lead to a decrease in the cost of production, which causes a shift in the supply curve to the right, meaning that suppliers can produce more at every price level. This results in lower prices and higher quantities supplied. Therefore, the supply curve shifts, rather than remaining stationary.

Cost-Reducing Technological Advancements Allow Suppliers to Earn More Profits but Have