Technology represents the stock of knowledge about how to combine resources

Technology represents the stock of knowledge about

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Technology represents the stock of knowledge about how to combine resources most efficiently. - An improvement in technology will lead to a decrease in the costs of productions for firms – the supply curve will shift to the right.
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3. Prices of substitutes in production (alternative goods): Goods that use the same or similar inputs. - For example, land used for dairy cows can (sometimes) be used for producing crops. If the price of wheat increases while the price of milk decrease, farmers may switch away from milk towards wheat instead. 4. Expected future prices: If firms expect prices to be higher in the future, they may decrease supply now and increase it in the future. If firms expect prices to fall, they will flog off as much as they can before the price falls. 5. Change in the number of sellers: The market supply is the sum of the quantity supplied of all sellers in the market. - An increase in the number of sellers in the market results in a supply shifts right. - A decrease in the number of sellers in the market results in the supply shifting to the left.
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