Technological progress increases the production efficiency and productivity and thereby, reduces the cost of production. This in turn increases the supply of the commodity. Such a change is reflected by a parallel outward shift of the supply curve for the commodity to the right. For instance,
1. In the agriculture sector, use of modern technology such as tractors, fertilisers etc. improves productivity and increases the supply of agricultural products.
2. In the clothing industry, the use of better machinery has led to an improvement in the quality of the at a lower cost of production. This in turn has increased the supply of different varieties of clothing.