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Refer to Exhibit 4.3, which shows the supply curves of baby formula. The development of a more efficient production technology for producing baby formula is likely to cause _____ a. a leftward shift of the supply curve from S2 to S1. b. a movement from point b to point a on the supply curve S1. c. a rightward shift of the supply curve from S1 to S2. d. a movement from point a to point b on the supply curve S1. e. a movement from point c to point d on the supply curve S2.

Respuesta :

Answer:

c

Explanation:

The supply curve is upward sloping. This is because their is a positive relationship between price and quantity supplied.

As a result of the new technology which makes production more efficient, there would be an increase in supply. When supply increases, the supply curves shifts to the right.

Only a change in price leads to a movement along the supply curve for a product.

according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.

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