XYZ Incorporated produces cell phones. Recently better machinery has been developed for XYZ factories which produce the

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Question:

XYZ Incorporated produces cell phones. Recently better machinery has been developed for XYZ factories which produce the cellphones. The introduction of these machines has lowered the input needed to produce the cellphones. What happens to XYZ Incorporated’s supply curve?

1. Shifts down/right
2. Moves along the supply curve
3. Shifts up/left