A factory recently added new robots to its production line, increasing productivity

To solve this problem, we first analyze the effect of an addition of new robots to the factory's production line. We examine whether it is a shift or a movement along the supply curve. When new robots are added, it is said that productivity increases. An increase in productivity can be viewed as an improvement in technology. Improvements in technology is one of the factors that shift the supply curve. Hence, it is a shift of the supply curve.

Now, we determine whether the direction of the shift is to the left or to the right. When technology improves, it is relatively less costly to produce a good. In other words, for the same quantity supplied, the less is the cost, or for the same cost, the more quantity is supplied. This is because productivity had increased. Hence, it is a rightward shift of the supply curve

In this case, improvements in technology brought about by the addition of new robots to the factory's production line will cause a rightward shift of the supply curve. The correct answer is C.

In addition, let us examine each option. We are looking for the option which shows that for the same cost, the more quantity is supplied, or for the same quantity supplied, the less is the cost.

• A. a leftward shift of the supply curve. A leftward shift of the supply curve shows that for the same cost, the less quantity is supplied, or for the same quantity supplied, the more is the cost. This is incorrect.
• B. a movement up along the supply curve. This is a movement and not a shift. This is incorrect.
• C. a rightward shift of the supply curve. A rightward shift of the supply curve shows that for the same cost, the more quantity is supplied, or for the same quantity supplied, the less is the cost. This is the correct answer.
• D. a shift straight up of the supply curve. A shift straight up of the supply curve has the same effect as a leftward shift of the supply curve. This is also incorrect.