How can technological advances impact supply?

Technological advances can significantly enhance supply by increasing the efficiency and decreasing the costs of production. When new technologies are introduced, they often streamline processes, improve productivity, and reduce the time and resources required to manufacture goods. This leads to a higher output of products at a lower cost per unit, making it feasible for producers to supply more goods to the market.

For example, automation in manufacturing allows factories to operate more quickly and with fewer errors, thus increasing the quantity of goods produced and lowering production costs. As a result, businesses can adjust their supply upwards, meeting consumer demand more effectively.

The other options do not reflect the typical impact of technological advances on supply; rather, they suggest outcomes that are contrary to the usual effects observed in economic environments where technology plays a pivotal role in production.