Which Factor Would Cause an INCREASE in the Supply of a Good

question 67

Multiple Choice

Which factor would cause an INCREASE in the supply of a good?

• A)an increase in input prices
• B)a decrease in the number of sellers in the market
• C)suppliers' expectations of higher prices in the future
• D)an advancement in the technology for producing the good

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Definitions:

MPS

Marginal Propensity to Save, which is the portion of additional income that a household saves rather than consumes.

APS

Assumes "APS" refers to "Average Propensity to Save," which is the proportion of total income or output that is saved rather than spent on consumption.

Induced Consumption

Refers to the portion of consumer spending that increases or decreases in response to changes in income.

Disposable Income

The pot of funds households have at their disposal for saving and spending, post-income tax.