Suppose that at prices of $1, $2, $3, $4, and $5 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the quantities supplied of Z to, say, 6, 8, 10, 12, and 14 units at these prices?

A. Improved technology for producing Z. B. An increase in the prices of the resources used to make Z. C. An increase in the excise tax on product Z. D. Increases in the incomes of the buyers of Z.

Option (A) is correct.

Explanation:

Prices          Quantities supplied           Increased quantity supplied

$1                  3                                            6

$2                 4                                            8

$3                 5                                            10

$4                 6                                             12

$5                 7                                             14

Improvement in the technological process will lead to increase the production of the firm because the advance technology increases the productivity of the employees. This will increases the supply of the product and will shift the supply curve rightwards.

Option (B): If there is an increase in the input prices then this will reduces the supply of the product due to higher cost of production.

Option (C): This will also reduces the supply of the product.

Option (D): Increase in the income level of the consumer will affect the demand of the product not the supply.