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Questions
Mention the impact of advanced technology on the supply of a commodity.
Explain the effect of improved (or advanced) technology on the supply curve of a commodity.
Solution
Improvement in technique of production reduces the cost of production. Consequently profits tend to increase, inducing an increase in supply and the supply curve shifts to the right.
Technological advancement → Cost ↓ → Profit ↑ → Supply ↑ → Rightward shift
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