📚 Learning Guide
Shifts in Supply Curve
hard

A new technology has been developed that significantly reduces the production costs of solar panels. How would this event affect the supply curve for solar panels, and why does it belong in that category?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose AnswerChoose the Best Answer

A

Shift to the left due to increased production costs

B

Shift to the right due to decreased production costs

C

No shift, as technology does not impact supply

D

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

Supply Curve Shifts
Production Costs
Technology in Economics
Topic

Shifts in Supply Curve

Difficulty

hard level question

Cognitive Level

understand

Deep Dive: Shifts in Supply Curve

Master the fundamentals

Definition
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).

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.