An improvement in production technology will:
a) shift the supply curve to the right.
b) shift the supply curve to the left.
c) shift the demand curve to the left.
d) increase equilibrium price.
The correct answer is Option “a”.
The improvement in production technology will increase the efficiency of production by shifting the supply curve to the right. In other words, it means that with better technology and more efficient ways of producing goods, a business can make more money with less effort. For example, if you can produce more widgets per hour than your competitors, you have an advantage over them because they must spend more time and resources on producing widgets.