Suppose that at prices of $5,$4,$3,$2,and $1 for product Z,the corresponding quantities supplied are 3,4,5,6,and 7 units,respectively.Which of the following would increase the quantities supplied of Z to,say,6,8,10,12,and 14 units at these prices?

Question

Quizplus · Accepted Answer

Improved technology for producing Z would increase the productivity of the resources used to make Z, resulting in an increase in the quantities supplied at each price level without increasing the cost of production. Therefore, it would be the best choice to increase the quantities supplied of Z at each price level. Option B would increase the cost of production, and therefore, the price of Z, which would decrease the quantities supplied of Z. Option C would also increase the price of Z and reduce the quantities supplied of Z. Option D might increase demand, but it would not affect the supply curve of Z.

Suppose That at Prices of $5,$4,$3,$2,and $1 for Product Z,the