The Graph Illustrates the Supply of Sweaters

question 16

Multiple Choice

The graph illustrates the supply of sweaters. Which of the following events will increase the supply of sweaters?

• A) A rise in the wage rate paid to the workers who make sweaters.
• B) A rise in the expected future price of a sweater.
• C) An increase in income if sweaters are a normal good.
• D) An increase in the number of sellers of sweaters.
• E) A rise in the price of a sweater.

---

Definitions:

Planned Output

The quantity of goods or services that a company intends to produce in a specific period.

Production Function

A mathematical relationship expressing the output generated by a firm from different quantities of inputs.

Capital

Economic resources that are used to produce goods and services, including buildings, machinery, tools, and equipment.

Labor

The human effort, including both physical and mental, used in the production of goods and services.