Advances in production technology typically reduce firms' costs, which increases the quantity supplied at each price.

Production Technology

Refers to the methods, equipment, and software used to produce goods and services.

Firms' Costs

The expenses incurred by businesses in the production of goods or services, including labor, materials, and overhead costs.

Quantity Supplied

The extent of a good or service that merchants are willing and have the capacity to offer at a pre-determined price.