Which of the following will NOT cause an increase in the supply of cornflakes?
A)an increase in the price of cornflakes
B)a cost-saving improvement in the technology of corn production
C)a reduction in the price of corn
D)the expectation by producers that the price of cornflakes will fall in the future

Question

Quizplus · Accepted Answer

An increase in the price of cornflakes would indicate that the demand for cornflakes is increasing, and so there would be no reason for producers to increase their supply. In fact, they may decrease supply to take advantage of the higher price.

Which of the Following Will NOT Cause an Increase in the Supply