What happens to supply when technology improves?

When technology improves, the production process becomes more efficient, allowing businesses to produce goods at a lower cost or with higher output. This increase in efficiency typically leads to a greater willingness and ability for suppliers to offer more of a good or service at various price levels. As a result, the overall supply of the product in the market increases.

Improvements in technology can include enhancements such as automated machinery, better production techniques, or innovations that streamline processes. With these advancements, companies can often create products more quickly and with fewer resources, which shifts the supply curve to the right. This increase in supply can help reduce prices for consumers, assuming demand remains unchanged.

In contrast, scenarios like supply decreasing, becoming unpredictable, or remaining constant do not accurately reflect the typical economic outcome associated with technological advancements. Therefore, the conclusion that supply increases when technology improves is well-supported by economic principles regarding production efficiency and market dynamics.