Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 3 - Demand, Supply, and Market Equilibrium - Questions - Page 66: 6a

Answer

The supply of auto-tires will cause an increase in the supply and shift the curve to the right.

Work Step by Step

Since technological advancements are determinants of supply, an increase in technology increases the output of the good, causing the supply curve to shift to the right. Price is the only thing that causes the quantity of supply to change or movement along the existing curve.
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