There Is a Technological Advance in the Production of a Good

question 60

Multiple Choice

There is a technological advance in the production of a good and simultaneously also an increase in the expected future price. Which of the following will happen?

• A) The equilibrium price falls because the supply curve shifts leftward.
• B) The technological improvement shifts the supply curve rightward while the increase in the expected future price shifts the supply curve leftward. The net effect is not known.
• C) The demand curve shifts rightward and the supply curve does not shift.
• D) The equilibrium price will rise because the supply curve shifts rightward.

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