Increase in production costs : Decrease in supply :: Increase in technology : ?

An increase in technology makes production easier and cheaper, so producers are able to make more goods for the same price. This lowers the cost of each unit, allowing firms to supply more at every price level. The supply curve therefore shifts to the right, showing a larger quantity supplied. For example, if a new machine lets a factory cut its production cost from $10 to $7 per unit, it can sell more units at the same market price. Thus, increase in technology leads to an increase in supply.