Which of the Following Would Cause a Decrease in Supply

question 60

Multiple Choice

Which of the following would cause a decrease in supply for good W?

• A)An increase in preferences for good W among consumers
• B)A technological advance in producing good W
• C)A price increase in a key input used to produce good W
• D)An increase in the income of consumers most likely to purchase good W

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Definitions:

Tax Revenue

The financial benefits governments realize from taxation.

Doodads

A nonspecific term often used to refer to small, miscellaneous items or gadgets.

Producer Surplus

The difference between the amount a producer is willing to accept for a good versus what they actually receive, often due to market prices.

Government Imposes

Actions taken by the government to regulate, tax, or otherwise exert authority over individuals and organizations, typically with the aim of affecting economic outcomes.