Question

A new technological breakthrough increases production for an industry and shifts the supply curve to the right. If the firm ________, then the firm will likely be happy about this new technology.
a. produces products that are considered inelastic
b. produces products because consumer will buy less
c. produces products that are considered elastic Next

Answer 1

Answer:

The correct answer is letter "C": produces products that are considered elastic.

Explanation:

Elasticity refers to the sensitivity of a good or service to reflect change in its supply or demand after a change in price. A product's supply is said to be elastic if the changes in the quantity supplied increases and it immediately determines a price in the price.

Thus, if for technological reasons the output of a company increases, considering that the product is elastic, the prices will increases which will provide the organization more revenue. That firm will be more than glad about the technological advance.