An increase in supply of a good is caused by:

Question

Quizplus · Accepted Answer

An increase in the number of sellers would result in an increase in the supply of a good, as there are now more individuals or companies producing and offering the product for sale. Resource prices rising (choice A) would likely decrease supply, as it would increase the production costs and decrease profitability. A fall in the price of the good (choice B) would not increase supply, but rather decrease it as the sellers have less incentive to produce if the price is low. Expectations of future price increases (choice D) may actually result in a decrease in supply, as sellers may withhold their product in anticipation of higher prices.

An Increase in Supply of a Good Is Caused By