Which of the Following Will Increase the Supply of a Good

question 78

Multiple Choice

Which of the following will increase the supply of a good?

• A)An increase in the price of another good producers could produce.
• B)A lower price paid for resources used in the production of the good.
• C)A decrease in the number of sellers.
• D)An increase in taxes paid to the government by producers.

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Definitions:

Government Spending

Expenditures made by the government sector on goods and services, including infrastructure, education, and defense.

Taxes

Essential monetary obligations or assorted forms of taxes imposed on individuals by government organizations, designed to facilitate government budgeting and various public expenditure.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total tax paid by the taxpayer’s total income.

Taxable Income

The portion of an individual's or organization's income used to calculate how much tax will be owed to the government.