An increase in the supply of a good is caused by:

Question

Quizplus · Accepted Answer

An increase in the supply of a good is caused by an increase in the number of sellers. When more sellers enter the market, they bring with them additional supply, which increases the overall supply of the good in the market. Input prices rising would generally decrease supply, as it raises production costs. A fall in the price of the good would not increase supply, as it would lead to lower profits and could discourage production. Expectations of future price increases would generally decrease supply, as sellers would hold on to their goods in anticipation of higher prices.

An Increase in the Supply of a Good Is Caused