Asked by Allie Spolsdoff on Apr 29, 2024
Verified
Which factor will NOT cause an increase in the supply of cornflakes?
A) an increase in the price of cornflakes
B) a cost-saving improvement in the technology of corn production
C) a reduction in the price of corn
D) the expectation by producers that the price of cornflakes will fall in the future
Supply of Cornflakes
Refers to the total quantity of cornflakes that producers are willing to sell at a given price over a specific period.
Price of Cornflakes
The amount of money required to purchase a specific amount of cornflakes, which can vary based on brand, location, and market conditions.
Technology of Corn
The application of scientific principles and techniques to the cultivation and processing of corn for improvement in yield, quality, and efficiency.
- Discriminate between the progression along the curve and the translocation of the curve itself concerning demand and supply.
- Recognize elements that contribute to changes in supply and demand curves.
Verified Answer
AP
Anthony PreziosioMay 03, 2024
Final Answer :
A
Explanation :
An increase in the price of cornflakes would not cause an increase in the supply of cornflakes, as it would not affect the production of corn or the availability of resources needed to produce cornflakes. In fact, an increase in price could potentially decrease supply if it deters some consumers from purchasing cornflakes.
Learning Objectives
- Discriminate between the progression along the curve and the translocation of the curve itself concerning demand and supply.
- Recognize elements that contribute to changes in supply and demand curves.