1) The technology for making boats increases

1.The technology for making boat increases. What happens to the price and quantity of boats?

a. The price of boat decreases and the quantity increases

If the technology for boat making increases, then there will be a decrease in the cost of the boat and hence firm will able to sell more boat at less cost. Therefore supply will increase and quantity will increase and the price will decrease.

2.The cost of making boats increases. What happens to the price and quantity of boats?

b.The price of the boat increases and the quantity decreases

When the cost of making boat increase then the cost for boat producer will increase which will increase the price of the boat. Hence supply of boat will decrease. Therefore, quantity will decrease and the price will increase.

3. Which of the following will not change supply?

b. coast

There will be no effect of coast on the supply. If we look at the other options, we get that price, technology, and the number of sellers will change the supply.

If price increase then the producer will supply more and when price decrease producer will supply less.

If there is technological advancement will increase the supply.

If the number of sellers increases then supply will increase.