Which one of the following would cause an increase in the supply of planes?
A) a decrease in the demand for planes
B) an increase in the price of planes
C) an increase in taxes applied to plane producers
D) an improvement in the technology used to produce planes

Question

Quizplus · Accepted Answer

An improvement in technology used to produce planes would increase the efficiency of production and reduce the cost of producing planes, leading to an increase in supply. A decrease in demand (A) or an increase in price (B) would lead to a decrease in supply, and an increase in taxes (C) would increase the cost of production, decreasing supply.

Which One of the Following Would Cause an Increase in the Supply