Use the graph below to answer the following question.   A straight increasing line labeled S1 with two data points labeled y and x is drawn parallel to another increasing line labeled S2 (to its right). In the market for automobiles, suppose there was a technological advance in the production process for producing automobiles.   Which of the following statements correctly illustrates the effect on supply?       Multiple Choice   The supply curve will shift from S1 to S2.   The supply curve will shift from S2 to S1.   There will be movement from point x to point y.   There will be movement from point y to point x

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Use the graph below to answer the following question.

 

A straight increasing line labeled S1 with two data points labeled y and x is drawn parallel to another increasing line labeled S2 (to its right).

In the market for automobiles, suppose there was a technological advance in the production process for producing automobiles.

 

Which of the following statements correctly illustrates the effect on supply?

 

 

 

Multiple Choice
  •  

    The supply curve will shift from S1 to S2.

  •  
    The supply curve will shift from S2 to S1.
  •  

    There will be movement from point to point y.

  •  

    There will be movement from point y to point x.

 
 
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