How can advancements in technology affect supply?

Advancements in technology can significantly influence supply, particularly by reducing production costs and increasing supply capacity. When new technologies are developed or existing technologies are improved, they can lead to more efficient production processes, which often lower the costs associated with manufacturing goods. For instance, automation technologies can expedite production times and minimize labor costs, enabling firms to produce more at a lower price.

Additionally, technology can enhance the capacity of firms to supply goods to the market. For example, better inventory management systems, improved transportation methods, and enhanced communication can streamline operations, allowing for quicker response times to market demands and ultimately increasing the quantity of goods available for sale.

In contrast, the other options do not accurately reflect how technological advancements typically impact supply. While production costs and supply capabilities might be affected in various ways in specific contexts, the overall trend with technological improvements is to create efficiencies that bolster supply. Thus, the correct answer reflects the general relationship between technology and supply dynamics.