Each of the following would cause an increase in the supply of baseballs EXCEPT
A) an improvement in technology.
B) a decrease in the cost of labor used to produce baseballs.
C) an expectation that the price of baseballs will rise in the future.
D) an increase in the number of baseball producers.

Question

Quizplus · Accepted Answer

An expectation that the price of baseballs will rise in the future would cause a decrease in the supply of baseballs, as producers would hold onto their inventory in the hopes of selling it for a higher price later. The other options would all cause an increase in the supply of baseballs.

Each of the Following Would Cause an Increase in the Supply