-Refer to Figure 7.7.A technological improvement is best represented by
A) A movement from point a to point b
B) A movement from point d to point a
C) A movement from point c to point a
D) A movement from point c to point d

Question

-Refer to Figure 7.7.A technological improvement is best represented by
A) A movement from point a to point b 
B) A movement from point d to point a 
C) A movement from point c to point a 
D) A movement from point c to point d

Quizplus · Accepted Answer

A technological improvement is represented by a movement to a higher indifference curve. A movement from point a to point b represents an improvement in technology because the consumer can now reach a higher indifference curve with the same bundle of goods.