Which of the following would reduce the supply of tennis shoes?

Question

Quizplus · Accepted Answer

A) An increase in demand would likely lead to an increase in supply as producers seek to meet the higher demand. Therefore, it would not reduce the supply.
B) A new tax on producers would increase their costs and decrease their profits, leading to a decrease in supply.
C) A reduction in the price of leather used to make tennis shoes would lower the costs of production and likely lead to an increase in supply. Therefore, it would not reduce the supply.
D) Option D is incorrect because only option B would reduce the supply of tennis shoes.

Which of the Following Would Reduce the Supply of Tennis