An increase in the supply of frozen yogurt will take place when:

Question

Quizplus · Accepted Answer

An increase in the supply of frozen yogurt will result from a decrease in production costs because the lower costs will encourage manufacturers to produce more and offer them at a competitive price. A decrease in price (choice A) may increase the demand for frozen yogurt, but it will not affect the supply in itself. Taxes (choice C) may also increase the cost of production, leading to a decrease in supply. Consumer income (choice D) may affect demand, but it is not related to the supply side.

An Increase in the Supply of Frozen Yogurt Will Take