Technological advances in recycling make it possible to produce a greater quantity of paper from a given quantity of recycled newspapers. What is the likely impact on the supply curve for paper?
A) There is a movement up along the supply curve.
B) There is a movement down along the supply curve.
C) The supply curve shifts to the left.
D) The supply curve shifts to the right.

Question

Quizplus · Accepted Answer

Technological advances in recycling will likely lead to an increase in the supply of paper, as more can be produced from a given quantity of recycled newspapers. This will cause the supply curve to shift to the right, reflecting the increase in the quantity of paper supplied at any given price level.

Technological Advances in Recycling Make It Possible to Produce a Greater