There will be an increase in supply when
A) a consumer's income increases.
B) there is an improvement in technology.
C) the demand curve shifts.
D) the market price rises from $3 to $4.

Question

Quizplus · Accepted Answer

An increase in supply is caused by a shift in the supply curve, which is triggered by several factors. One of such factors is an improvement in technology, which typically leads to a reduction in production cost and an increase in supply. Option A refers to an increase in demand, which is not the same as an increase in supply. Option C, the opposite of option A, is also not correct. Finally, option D refers to a change in the market price and does not directly affect the supply curve.

There Will Be an Increase in Supply When