Which of the Following Would Cause an Increase in the Supply

question 109

Multiple Choice

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

• A)a decrease in the price of wine (assuming that cheese and wine are complements)
• B)an increase in the price of cheese
• C)an increase 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:

Vertical Integration

Refers to the common ownership of two firms in separate stages of the vertical supply chain that connects raw materials to finished goods.

Higher Taxes

An increase in the mandatory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions.

New Product

An item that has been recently introduced to the market, offering new or improved features, functionalities, or benefits.

Rent Control

Government policies or laws that limit the amount landlords can charge for leasing residential properties in order to keep housing affordable.