Which of the Following Events Could Cause an Increase in the Supply

question 1

Multiple Choice

Which of the following events could cause an increase in the supply of ceiling fans?

• A)The number of sellers of ceiling fans increases.
• B)There is an increase in the price of air conditioners,and consumers regard air conditioners and ceiling fans as substitutes.
• C)There is an increase in the price of the motor that powers ceiling fans.
• D)All of the above are correct.

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Definitions:

Normal Profit

The minimum level of profit necessary for a firm to remain competitive in the market, essentially covering opportunity costs.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in a market.

Purely Competitive Industry

A purely competitive industry is characterized by many buyers and sellers, homogenous products, and free entry and exit from the market, ensuring no single entity can control the market price.

Units of Output

Quantities of product or service produced by a company, which can be measured to assess productivity or performance.