Figure 1A.1 :
-Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for walnuts. An advance in production technology which makes harvesting walnuts less time consuming would be represented by a shift from
A) Demand 1 to Demand 2.
B) Demand 2 to Demand 1.
C) Supply 1 to Supply 2.
D) Supply 2 to Supply 1.

Question

Figure 1A.1 : 
-Refer to Figure 1A.1. Assume that the graph in this figure represents the demand and supply curves for walnuts. An advance in production technology which makes harvesting walnuts less time consuming would be represented by a shift from
A) Demand 1 to Demand 2. 
B) Demand 2 to Demand 1. 
C) Supply 1 to Supply 2. 
D) Supply 2 to Supply 1.

Quizplus · Accepted Answer

An advance in production technology making harvesting walnuts less time-consuming would increase the efficiency of producing walnuts, leading to a higher quantity supplied at each price level. This is represented by a shift of the supply curve to the right, from Supply 1 to Supply 2.