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Question #49129

An increase in productivity should ?

Options:

A) Lead to a contraction of supply

B) Lead to an expansion of supply

C) Lead to a shift in supply outwards (i.e more supplied at each and every price)

D) Lead to a higher equilibrium and lower equilibrium quantity

Answer: An increase in productivity should Lead to a shift in supply outwards (i.e more supplied at each and every price).

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