An Advance in Technology in the Production of Good X

question 69

Multiple Choice

An advance in technology in the production of good X causes

• A) a rightward shift in the supply curve for good X.
• B) a leftward shift in the supply curve for good X.
• C) the supply curve for good X to change from upward sloping to vertical.
• D) the supply curve for good X to change from vertical to upward sloping.

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Definitions:

Wage Rate

The amount of money paid to an employee per unit of time or piece of work completed.

Leisure

Time spent away from work and essential domestic activities, often used for rest, recreation, or cultural pursuits.

Inferior Good

A type of good for which demand decreases when consumer income rises, in contrast to normal goods, where demand increases with rising income.

Consumer Income

The total amount of income earned by consumers in an economy, including wages, salaries, benefits, and other income sources, influencing their buying power.