Impact of Technological Improvement on Supply Curve and Quantity Supplied

There is a direct relationship between technology and supply. Technological advancements lead to the production of goods and services at a lower cost, which ultimately results in an increase in supply. Let's explore the impact of technological improvement on the supply curve and quantity supplied.

Shift in Supply Curve

- A shift in the supply curve occurs when there is a change in the quantity supplied at every price level.
- Technological improvement leads to an increase in supply, shifting the supply curve to the right.
- The increase in supply is due to the production of goods and services at a lower cost, which encourages producers to supply more at every price level.
- As a result, the supply curve shifts to the right, indicating an increase in supply at every price level.

Increase in Quantity Supplied

- Technological improvement leads to an increase in the quantity supplied of goods and services, keeping the price constant.
- This is because technological improvement leads to the production of goods and services at a lower cost, which encourages producers to supply more at the same price level.
- The increase in quantity supplied is due to the efficiency of production, which enables producers to produce more for the same cost.
- As a result, an increase in quantity supplied is observed, which is represented by a movement along the supply curve.

Conclusion

In conclusion, technological improvement leads to an increase in supply and quantity supplied. The increase in supply is represented by a shift in the supply curve to the right, while the increase in quantity supplied is represented by a movement along the supply curve. Therefore, we can say that both options (b) and (c) are correct.

If there is an improvement in technology, the supply will increase. As a result of increase in supply ,the supply curve shift to right. Hence option b is right