Advances in productivity increase supply because they might

Name: Advances in productivity increase supply because they might
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When productivity increases, the cost of production decreases. This means that firms can produce more goods at a lower cost, which increases the supply of the good in the market. Therefore, D is the correct answer. A, B, and E are incorrect because they do not accurately describe how productivity affects supply. C could be a possible effect, but it is not always the case.

Advances in Productivity Increase Supply Because They Might