A technological advance in the production of automobiles will:
A)increase the demand for automobiles.
B)increase the supply of automobiles.
C)decrease the demand for automobiles.
D)decrease the supply of automobiles.

Question

Quizplus · Accepted Answer

Technological advances in the production of automobiles typically increase the efficiency of production, allowing for more automobiles to be produced at lower costs. This leads to an increase in the supply of automobiles, as producers are able to offer more units for sale at a given price. However, it does not necessarily affect the demand for automobiles.

A Technological Advance in the Production of Automobiles Will