ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a decrease in the cost of inputs.
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fewer sellers in the market place.
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an increase in productivity.
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a change in taxes or subsidies.
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Detailed explanation-1: -All of the following can cause an increase in supply EXCEPT? a decrease in the cost of inputs.
Detailed explanation-2: -The supply of a good increases if the price of one of its substitutes in production falls. The supply a good decreases if the price of one of its substitutes in production rises. A good that is produced along with another good.
Detailed explanation-3: -A decrease in the costs of production.
Detailed explanation-4: -The answer is C. These factors can be an improvement in technology, changes in the cost of inputs, changes in taxation or subsidies, etc. On the other hand, a change in the price of the good causes movements along the supply curve itself but will not cause any shift in the supply curve.
Detailed explanation-5: -the price of the product being supplied. the number of firms producing the product. technological advances. the price of inputs. the price of other or alternative products that could be produced. unpredictable events such as the weather.