Which situation exemplifies a shift in supply due to changes in technology?

The situation that highlights a shift in supply due to changes in technology is the introduction of a new manufacturing process that increases production efficiency. When technology improves, it allows producers to create goods more efficiently, reducing the cost of production and enabling them to supply more at any given price. This shift in supply reflects a favorable change in the ability to produce, shifting the supply curve to the right, which typically results in lower equilibrium prices and higher quantities sold in the market.

In contrast, when production costs increase, as would be the case in the first option, this tends to discourage supply. Changes in consumer demand, mentioned in the third option, relate to shifts in demand rather than supply, as they do not directly affect producers' abilities to manufacture goods. A decrease in the number of sellers in the market refers to reduced competition, which would typically lead to a contraction of supply rather than a shift driven by technological advancements.