Which of the Following Increases the Supply of a Product

question 248

Multiple Choice

Which of the following increases the supply of a product?

• A) lower prices for the resources used to produce the product
• B) some producers going bankrupt and leaving the industry
• C) a higher price for the product
• D) an increase in the expected future price of the product
• E) a decrease in productivity

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Definitions:

MPS

Marginal Propensity to Save, which is the fraction of an increase in income that is not spent on an increase in consumption.

Disposable Income

Funds that households can direct towards their saving and spending ambitions after income taxes are accounted for.

Consumption

The portion of income spent on goods and services rather than saved.

Billion

A number equivalent to one thousand million (1,000,000,000) or, in some number systems, a million million (1,000,000,000,000).