Which of the following would cause an increase in the supply of peanut butter?
A) a decrease in the price of grape jelly (assuming that peanut butter and grape jelly are complements)
B) an increase in the price of peanut butter
C) an increase in the price of a product that producers sell instead of peanut butter
D) an increase in the number of firms that produce peanut butter

Question

Quizplus · Accepted Answer

An increase in the number of firms that produce peanut butter would lead to an increase in the supply of peanut butter. As there are more firms producing peanut butter, there will be more peanut butter available in the market, which would shift the supply curve to the right.

Which of the Following Would Cause an Increase in the Supply