An increase in the productivity of producing jeans results in
A) the quantity of jeans supplied increasing.
B) the supply of jeans increasing.
C) buyers demanding more jeans because they are now more efficiently produced.
D) buyers demanding fewer jeans because their price will fall, which signals lower quality.
E) some change, but the impact on the supply of jeans is impossible to predict.

Question

Quizplus · Accepted Answer

An increase in productivity leads to a decrease in production costs, allowing producers to increase their supply without changing the price. Therefore, an increase in productivity would result in an increase in the supply of jeans.

An Increase in the Productivity of Producing Jeans Results in