Which of the following statements is consistent with a decrease in supply?
A) Prices of raw material inputs have increased.
B) There has been an advance in technology.
C) Consumers' incomes have increased.
D) The market price has decreased.

Question

Quizplus · Accepted Answer

If prices of raw material inputs increase, it becomes more expensive for suppliers to produce their goods, leading to a decrease in supply. The other options are not indicative of a decrease in supply - an advance in technology often leads to an increase in supply, an increase in consumers' incomes can lead to an increase in demand (and potentially supply as well), and a decrease in market price typically leads to an increase in supply (rather than a decrease).

Which of the Following Statements Is Consistent with a Decrease