Political Science, asked by amanlii803, 11 months ago

Does a change in producers technology lead to a movement along the supply curve

Answers

Answered by purnachandrasahoo157
2

A technological change would lead to a shift in supply curve.

Only when quantity supplied gets affected by a change in price of that commodity, movement would happen along the supply curve. And thats because by definition supply curve is a graphical representation of quantity supplied at different price levels of a commodity.

As regards to change in supply caused by factor other than price of the commodity, that would lead to a shift in supply curve.

Like the case that has been mentioned in the question. Technological change. Intuitively, I would assume a better technology use with time. And this would mean increase in production and hence increased willingness to supply at each price level by producers which would shift supply curve to the right.

An inferior technology on the other hand would shift the supply curve leftwards indicating producers are willing to supply less at each price.

Hope this helps.

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