Boris discovers a new technology that can produce economics textbooks at triple the speed that textbooks are usually produced.What effect can Boris expect this discovery to have on the supply of economics textbooks?

Question

Quizplus · Accepted Answer

Boris's discovery of a new technology that can produce economics textbooks at triple the usual speed will lead to an increase in the efficiency of production. This, in turn, will lead to a decrease in the production cost of each textbook. Since the supply of goods is directly related to their production costs, the supply curve for economics textbooks will shift to the right. Hence, the answer is C - the supply curve will shift to the right, thereby increasing the quantity supplied of economics textbooks.

Boris Discovers a New Technology That Can Produce Economics Textbooks