Chapter 1. eFigure 2.5

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You must read each slide, and complete any questions on the slide, in sequence.
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Question 1 of 3

Question 1.

Why does the faster harvesting method change the supply of tomatoes?

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Correct! The faster harvesting method represents a change in production technology for the farm. In this case we have no information about the cost of the technology, so we do not know that it is more expensive and would raise the cost of production. The faster harvesting method changes the cost of production, not the price of tomatoes.That is, the entire supply shifts rather than merely a slide along the curve. However, we do know that the new technology increases the speed of the harvest, saving time and reducing the costs of production.
Incorrect. The faster harvesting method represents a change in production technology for the farm. In this case we have no information about the cost of the technology, so we do not know that it is more expensive and would raise the cost of production. The faster harvesting method changes the cost of production, not the price of tomatoes.That is, the entire supply shifts rather than merely a slide along the curve. However, we do know that the new technology increases the speed of the harvest, saving time and reducing the costs of production.