Which factor would cause an INCREASE in the supply of a good?
A) rising input prices
B) a fall in the price of the good
C) an increase in the number of sellers
D) expectations of future price increases

Question

Quizplus · Accepted Answer

An increase in the number of sellers would cause an increase in the supply of a good, as there are now more producers offering the product in the market, resulting in a greater quantity of the good being available for purchase. Factors like rising input prices (A) and expectations of future price increases (D) would have the opposite effect on supply, causing it to decrease. A fall in the price of the good (B) would not necessarily affect the supply, but rather, it would impact the demand for the good.

Which Factor Would Cause an INCREASE in the Supply of a Good