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:

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product or service.

Output

The total amount of goods and services produced by an economic system, company, or sector within a certain period.