Which of the following statements is consistent with an increase in supply?
A) The price of labor input has increased.
B) There has been an advance in technology.
C) Consumers' incomes have increased.
D) The market price has decreased.

Question

Quizplus · Accepted Answer

An advance in technology can lead to an increase in supply because it allows for more efficient production and lower costs. Option A is inconsistent with an increase in supply because an increase in the price of labor input would lead to higher production costs and could decrease supply. Option C is inconsistent because an increase in consumers' incomes could lead to an increase in demand, but would not directly affect supply. Option D is inconsistent because a decrease in market price would typically lead to a decrease in supply, as producers would be less willing to supply goods at a lower price.

Which of the Following Statements Is Consistent with an Increase