Increases in productivity due to changes in technological capacity could be best represented by a:
A) Shift out in the demand curve.
B) Shift out in the supply curve.
C) Shift out in both the demand and supply curves.
D) Shift back in the supply curve.

Question

Quizplus · Accepted Answer

Increases in productivity due to technological advancements typically lead to a shift out in the supply curve, as producers are able to produce more goods or services at the same cost, or the same amount at a lower cost.

Increases in Productivity Due to Changes in Technological Capacity Could