The table given below represents the supply schedules of the only three DVD producers in the market for DVDs.Table 3.2

-Assume that Ford Motor Company engineers achieve a revolutionary technological breakthrough in the production process of automobiles. Which of the following is expected to take place?
A)A movement up along the existing supply curve for Ford automobiles
B)The supply of Ford automobiles will remain unchanged
C)An inward shift of the supply curve for Ford automobiles
D)A downward movement along an existing supply curve for Ford automobiles
E)An outward shift of the supply curve for Ford automobiles

Question

The table given below represents the supply schedules of the only three DVD producers in the market for DVDs.Table 3.2
 
-Assume that Ford Motor Company engineers achieve a revolutionary technological breakthrough in the production process of automobiles. Which of the following is expected to take place?
A)A movement up along the existing supply curve for Ford automobiles 
B)The supply of Ford automobiles will remain unchanged 
C)An inward shift of the supply curve for Ford automobiles 
D)A downward movement along an existing supply curve for Ford automobiles 
E)An outward shift of the supply curve for Ford automobiles

Quizplus · Accepted Answer

The revolutionary technological breakthrough achieved by Ford Motor Company engineers is expected to increase the efficiency of production, resulting in the ability to produce more automobiles at lower costs. As a result, the supply curve for Ford automobiles is likely to shift outward, indicating that more units of Ford automobiles will be supplied at each price level. This is represented as a shift of the supply curve to the right, reflecting an increase in quantity supplied at every price point.

The Table Given Below Represents the Supply Schedules of the Only