Which of the Following Would Cause an Increase in the Supply

question 97

Multiple Choice

Which of the following would cause an increase in the supply of cheese?

• A)A decrease in the price of Vegemite (assuming that Vegemite and cheese are complements).
• B)An increase in the price of cheese.
• C)An increase in the price of a product that producers sell instead of cheese.
• D)An increase in the number of firms that produce cheese.

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Definitions:

Own-price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its own price, often used to understand consumer sensitivity to price changes.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a particular price.

Rice

A staple food grain consumed worldwide, known for its versatility and ability in serving as a primary source of energy.

Normal Goods

For normal goods, demand increases as income increases.