Suppose that a more eﬃcient way to produce a good is discovered, thus lowering production costs for the good. This will cause a(n)
A) increase in supply.
B) decrease in supply.
C) increase in quantity supplied.
D) decrease in quantity supplied.

Question

Quizplus · Accepted Answer

The discovery of a more efficient way to produce a good will lower production costs, making it more profitable for firms to produce and sell the good. As a result, firms will be willing to supply more of the good at any given price, leading to an increase in supply.

Suppose That a More Eﬃcient Way to Produce a Good