Exhibit 4.3

-Refer to Exhibit 4.3, which shows the supply curves of baby formula. The development of a more efficient production technology for producing baby formula is likely to cause _____

Question

Exhibit 4.3
 
-Refer to Exhibit 4.3, which shows the supply curves of baby formula. The development of a more efficient production technology for producing baby formula is likely to cause _____

Quizplus · Accepted Answer

A more efficient production technology would decrease the cost of producing baby formula, which would shift the supply curve to the right from S₁ to S₂. This is because the suppliers would be willing to supply a greater quantity at each price level than they were before due to the decreased cost of production. Therefore, the correct answer is (A) a rightward shift of the supply curve from S₁ to S₂.

Exhibit 4.3 -Refer to Exhibit 4.3, Which Shows the Supply Curves of the Supply