Which of the following would cause an increase in the market supply of drones?
A) a decrease in the demand for drones
B) an increase in taxes levied on drones
C) an increase in the cost of components used to make drones
D) an increase in the number of firms making drones

Question

Quizplus · Accepted Answer

An increase in the number of firms making drones would cause an increase in the market supply of drones because there are now more producers competing to sell their goods. This increase in supply would likely lead to a decrease in the price of drones. A decrease in the demand for drones, an increase in taxes levied on drones, and an increase in the cost of components used to make drones would all cause a decrease in the market supply of drones.

Which of the Following Would Cause an Increase in the Market