Which of the following will NOT cause an increase in the supply of good X?
A)an improvement in the technology used to produce good X
B)a decrease in the price of good Y, a substitute in production
C)an increase in the price of inputs used to produce good X
D)a decrease in the price of inputs used to produce good X

Question

Quizplus · Accepted Answer

An increase in the price of inputs used to produce a good will decrease the profitability of producing the good, leading to a decrease in the supply of good X. All other options will increase the profitability of producing good X and lead to an increase in the supply of the good.

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