A cost cutting technical advance in the production of cars will cause:
A)the demand curve for cars to rise.
B)the demand curve for cars to fall.
C)no change in the supply of, or demand for cars.
D)a rightward shift in the supply curve of cars.
E)a leftward shift in the supply curve for cars.

Question

Quizplus · Accepted Answer

A cost-cutting technical advance in the production of cars would make it cheaper to produce cars, leading to an increase in the quantity supplied at every price point. This is represented by a rightward shift in the supply curve of cars, indicating that more cars are available for sale at each price than before the advance.

A Cost Cutting Technical Advance in the Production of Cars