Which of the following would cause an increase in the market supply of mountain bikes?
A)a decrease in the demand for mountain bikes
B)an increase in taxes levied on mountain bike manufacturers
C)an increase in the cost of components used to assemble mountain bikes
D)an increase in the number of firms making mountain bikes

Question

Quizplus · Accepted Answer

An increase in the number of firms making mountain bikes would increase the market supply of mountain bikes. This is because there would be more firms producing the same product, which would lead to an increase in the quantity supplied at any given price level.

Which of the Following Would Cause an Increase in the Market