The product is a normal product.

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

Question

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

Quizplus · Accepted Answer

An increase in the price of a substitute in production can cause producers to switch to producing the substitute, thus decreasing the supply of the original product.

The Product Is a Normal Product