Which of the Following Increases the Quantity Supplied of Compact

question 112

Multiple Choice

Which of the following increases the quantity supplied of compact discs, but does NOT increase the supply of compact discs?

• A) A decrease in the number of suppliers of compact discs.
• B) An increase in the price of the resources used to produce compact discs.
• C) New technology that lowers the cost of producing compact discs.
• D) A decrease in the price of a compact disc.
• E) An increase in the price of a compact disc.

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total income of the taxpayer, indicating the burden of taxation.

Federal Personal Income Tax

A tax levied by the federal government on individuals’ earnings, varying in rate based on income level.

Government Purchases

Expenditures made by the government for goods and services that directly satisfy the needs of the community or are used to provide public services.

Transfer Payments

These are payments made by the government to individuals, without the government receiving any goods or services in return, such as welfare or social security.