Figure 4-16

-Assume that Figure 4-16 shows the supply of new houses.An improvement in the technology for building houses will shift supply from

Question

Figure 4-16
 
-Assume that Figure 4-16 shows the supply of new houses.An improvement in the technology for building houses will shift supply from

Quizplus · Accepted Answer

An improvement in technology will allow suppliers to produce more houses at the same cost or produce the same number of houses at lower costs. This will cause a shift in the supply curve to the right, from S₁ to S₂, indicating that more houses can be supplied at each price level.

Figure 4-16 -Assume That Figure 4-16 Shows the Supply of New Houses.An