Suppose the technology of wool production improves. This will likely result in:

Question

Quizplus · Accepted Answer

When the technology of wool production improves, it becomes easier and more efficient to produce wool. This will shift the supply curve to the right, leading to a decrease in the equilibrium price of wool. At the same time, the increase in productivity and efficiency will allow suppliers to produce and offer a greater quantity of wool at the lower price, resulting in an increase in the equilibrium quantity of wool exchanged. Therefore, the correct option is C.

Suppose the Technology of Wool Production Improves