Which factor will NOT cause an increase in the supply of cornflakes?
A)an increase in the price of cornflakes
B)a cost-saving improvement in the technology of corn production
C)a reduction in the price of corn
D)the expectation by producers that the price of cornflakes will fall in the future

Question

Quizplus · Accepted Answer

An increase in the price of cornflakes would not cause an increase in the supply of cornflakes, as it would not affect the production of corn or the availability of resources needed to produce cornflakes. In fact, an increase in price could potentially decrease supply if it deters some consumers from purchasing cornflakes.

Which Factor Will NOT Cause an Increase in the Supply