Learning Path
Question & Answer
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Shift to the left due to increased production costs
Shift to the right due to decreased production costs
No shift, as technology does not impact supply
Shift to the left because of decreased consumer demand
Understanding the Answer
Let's break down why this is correct
When a new technology cuts the cost of making solar panels, producers can make more panels for the same price. Other options are incorrect because The idea that lower costs push the supply curve left is a mix‑up; Technology does change supply.
Key Concepts
Shifts in Supply Curve
hard level question
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Deep Dive: Shifts in Supply Curve
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Definition
Shifts in the supply curve occur when factors other than price influence the quantity of a product supplied at each price level. Changes in production costs, technology, government policies, and expectations can shift the supply curve either outward (increase in supply) or inward (decrease in supply).
Topic Definition
Shifts in the supply curve occur when factors other than price influence the quantity of a product supplied at each price level. Changes in production costs, technology, government policies, and expectations can shift the supply curve either outward (increase in supply) or inward (decrease in supply).
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