A productivity-enhancing innovation has the effect of
A) shifting a supply curve to the right.
B) shifting a supply curve to the left.
C) shifting a demand curve to the right.
D) shifting a demand curve to the left.

Question

Quizplus · Accepted Answer

In general, a productivity-enhancing innovation in an industry provides more of the same product, holding the resources employed constant. This has the effect of shifting the supply curve to the right.

A Productivity-Enhancing Innovation Has the Effect of