If workers become more productive, what is likely to happen to the supply curve of goods?

Get more with Examzify Plus

Remove ads, unlock favorites, save progress, and access premium tools across devices.

FavoritesSave progressAd-free
From $9.99Learn more

Study for the EPF Honors Essentials Test. Use multiple choice questions with hints and explanations for preparation. Achieve exam readiness to excel!

When workers become more productive, they are able to produce more goods and services within the same amount of time. This increase in productivity means that each worker can generate a higher output, effectively reducing production costs for businesses. As a result, suppliers are willing and able to offer more goods at each price level.

This change leads to a rightward shift in the supply curve. A rightward shift indicates that at the same prices, suppliers can now supply a greater quantity of goods than before. In practical terms, if a factory increases its efficiency due to improved training, better technology, or streamlined processes, it can produce more units of its product without a corresponding increase in costs. Thus, the overall market supply increases, resulting in a more favorable supply environment for consumers.

The other options do not accurately reflect the relationship between productivity and supply. A leftward shift would indicate a decrease in supply, which is contrary to the concept of increased productivity. An unchanged supply curve suggests that productivity has no effect on supply, which overlooks the fundamental relationship. A perfectly inelastic supply curve indicates that supply does not change regardless of price, which doesn't apply to the context of increased productivity allowing for more goods to be offered.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy