what is supply? explain the effect of technological progress on supply of a good ?
supply of a commodity by a firm refers to the quantity of commodity which a firm is willing and able to offer for sale at a given price during a given period of time.
the supply curve of the good will shift to the right as new technique of production reduces the marginal cost of producing that good. because when marginal cost reduces , profit margin for the firm will increase. this will induce the producer to increase the supply of that good . therefore, he will increase the supply at the same price.
the supply curve of the good will shift to the right as new technique of production reduces the marginal cost of producing that good. because when marginal cost reduces , profit margin for the firm will increase. this will induce the producer to increase the supply of that good . therefore, he will increase the supply at the same price.