An improvement in production technology causes an increase i

An improvement in production technology causes an increase in:

Select one:

a. the quantity supplied by firms and an increase in market supply.

b. supply by firms and an increase in the market quantity supplied.

c. the quantity supplied by firms and an increase in the market quantity supplied.

d. supply by firms and an increase in market supply.

Solution

The change in technology is an exogenous factor and so this will cause a change in the supply not the quantity supplied. The correct answer is D.