Ceteris paribus,which of the following is most likely to cause a decrease in the supply of skateboards?
A)An increase in the price of skateboards.
B)An increase in the cost of materials used to produce skateboards.
C)An improvement in skateboard-making technology.
D)All of the choices are correct.

Question

Quizplus · Accepted Answer

An increase in the cost of materials used to produce skateboards would make it more expensive for producers to make skateboards, which would decrease the supply of skateboards. An increase in price (A) would likely increase the supply as it would encourage producers to offer more skateboards for sale. An improvement in technology (C) could lower the cost of production and increase the supply. Option D is incorrect because the choice mentions all three options, but only one is likely to cause a decrease in the supply of skateboards.

Ceteris Paribus,which of the Following Is Most Likely to Cause