The product is a normal product.

-What will cause the supply of a product to increase?
A)An increase in the price of resources.
B)A decrease in the number of suppliers.
C)The expectation of producers that the future price will be higher.
D)An improvement in the technology of producing the product.
E)An increase in the price of a productively related product.

Question

The product is a normal product.
 
-What will cause the supply of a product to increase?
A)An increase in the price of resources. 
B)A decrease in the number of suppliers. 
C)The expectation of producers that the future price will be higher. 
D)An improvement in the technology of producing the product. 
E)An increase in the price of a productively related product.

Quizplus · Accepted Answer

An improvement in the technology of producing the product will lead to an increase in the supply of the product. With better technology, producers can produce the same amount of product with fewer resources, which lowers the cost of production and enables them to produce more at a lower cost. This will increase the supply of the product. The other options are not likely to cause an increase in supply.

The Product Is a Normal Product