Which of the following would be expected to cause an increase in the supply of fax machines?
A) An increase in the number of business firms demanding fax machines.
B) An increase in the price of fax machines.
C) A decrease in the cost of manufacturing fax machines.
D) The expectation that the price of fax machines will fall in the future.
E) An increase in the demand for fax machines.

Question

Quizplus · Accepted Answer

A decrease in the cost of manufacturing fax machines would lead to an increase in the supply of fax machines as it becomes cheaper for manufacturers to produce them. Option A describes an increase in demand for fax machines, which is not related to the supply side. Option B describes an increase in price which would generally decrease supply. Option D describes expected future prices and does not directly affect the current supply. Option E again describes an increase in demand, while the question specifically asks about supply.

Which of the Following Would Be Expected to Cause an Increase