There Is a Technological Advance in the Production of a Good

question 123

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 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.
• B)The equilibrium price will rise because the supply curve shifts rightward.
• C)The equilibrium price falls because the supply curve shifts leftward.
• D)The demand curve shifts rightward and the supply curve does not shift.