PRC-3 · Chapter 10 · Question 45 of 70
A massive improvement in robotic assembly lines drastically cuts the production cost of televisions. What is the immediate graphical impact on the market for televisions?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The supply curve shifts to the right
Explanation
A decrease in the cost of production makes manufacturing more profitable, allowing firms to supply more goods at every price level (a rightward shift in supply).
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