Which of the following would reduce the supply of microcomputers?
A) higher wage rates for the workers that assemble the computers
B) a reduction in the price of computers
C) a technological improvement that lowers the cost of producing the computers
D) a reduction in the price of computer chips used to produce the computers

Question

Quizplus · Accepted Answer

If wage rates for the workers that assemble computers increase, the cost of production will increase, reducing the profit margin for producers, and causing them to reduce the supply of microcomputers to maintain profitability.

Which of the Following Would Reduce the Supply of Microcomputers