Which of the Following Would Cause an Increase in the Market

question 3

Multiple Choice

Which of the following would cause an increase in the market supply of mountain bikes?

• A)a decrease in the demand for mountain bikes
• B)an increase in taxes levied on mountain bike manufacturers
• C)an increase in the cost of components used to assemble mountain bikes
• D)an increase in the number of firms making mountain bikes

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Definitions:

Profit Margins

A financial metric that measures the percentage of revenue that exceeds the costs of producing goods or services.

Open System

An open system is a system that continuously interacts with its environment, exchanging information, matter, and energy.

Theory X

A management concept that assumes employees are naturally unmotivated and dislike work, needing constant supervision and control.

Resource Inputs

The materials, labor, information, and other assets used to produce goods or services in a system or process.