Question

Suppose that the technology used to manufacture laptops has improved. The likely result would be: Select one: a. an increase in supply of laptops. b. an increase in quantity supplied of laptops. c. a decrease in supply of laptops. d. a decrease in quantity supplied of laptops.

Answer 1

Answer: The correct option is B. an increase in quantity supplied of laptops.

Explanation: Supply is the amount of goods and services that a given firm is willing and able to sell to the market, at a given price and at a given point in time.

Factors that affect supply include:

- Price

- Cost of Production

- Technology

- Transport Conditions

- Government's Policies

- Prices of Related Goods, and so on.

In the scenario given in the question above, if an improved technology is being used to manufacture laptops, this will cause production costs to decrease, and cause output level to increase, thereby leading to a lower price of the laptops.

At this price, consumers will demand more of the laptops, and an increase in demand will definitely lead to an increase in the quantity of laptops that will be supplied to the market.

Answer 2

Answer:

The answer to this question is B. An increase in quantity supplied of laptops

Explanation:

Supply is the amount of a given product or service that suppliers are willing to offer to consumers at a given price level at a given period

One of the factor that affects supply is the level of technology available or used by the manufacturer. An increase in the level of technology will translate to an increase in the quantity supply by the manufacturer.

Other factors that affect supply are,   the price of the product or service, the price of related goods or services , the prices of production factors , the price of inputs, weather,  government policies etc.

Hence the correct answer is   b. an increase in quantity supplied of laptops.