Suppose that at prices of $1, $2, $3, $4, and $5 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the quantities supplied
Of Z to, say, 6, 8, 10, 12, and 14 units at these prices?

Question

Quizplus · Accepted Answer

Improved technology for producing Z would increase the efficiency and decrease the cost of producing Z, thus increasing the quantities supplied at each price level. An increase in the prices of resources used to make Z (B) would decrease the profit margins for producing Z and potentially decrease the quantities supplied at each price level. An increase in the excise tax on product Z (C) would increase the cost of producing Z and potentially decrease the quantities supplied at each price level. Increases in the incomes of buyers of Z (D) may lead to increased demand for Z, but not necessarily increased quantities supplied at each price level.

Suppose That at Prices of $1, $2, $3, $4, and $5