How does an improvement in production technology affect the supply curve?

When there is an improvement in production technology, it makes the production process more efficient. This usually results in a lower cost of production for firms. As a result, producers are willing to supply more goods at each price level. This change leads to a shift in the supply curve.

Specifically, the supply curve shifts to the right. This rightward shift indicates that at every price, a greater quantity of the good is supplied than before. Therefore, the correct answer is: a) shift the supply curve to the right.

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