Which factor would cause an INCREASE in the supply of a good?
A)an increase in input prices
B)suppliers' expectations of higher prices in the future
C)an increase in the price of the good
D)a decrease in the price of resources used in production

Question

Quizplus · Accepted Answer

A decrease in the price of resources used in production would cause a lower cost of production for suppliers, allowing them to produce and sell more of the good at any given price, therefore increasing the supply. The other options would either increase costs of production or decrease the motivation to increase supply.

Which Factor Would Cause an INCREASE in the Supply of a Good