Asked by Justin Robbins on May 03, 2024
Verified
Which factor would cause a DECREASE in the supply of a good?
A) a decrease in input prices
B) an increase in the number of sellers in the market
C) suppliers' expectations of higher prices in the future
D) an advancement in the technology for producing the good
Input Prices
The costs associated with purchasing the raw materials and resources required to produce a good or service.
Number of Sellers
Refers to the total count of providers or suppliers offering a product or service in a market.
Suppliers' Expectations
The anticipations of future market conditions by those who provide goods or services, influencing their current supply decisions.
- Ascertain the factors precipitating an escalation or decrease in the supply of a merchandise.
- Evaluate the consequences of input costs on the provision of goods.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
C
Explanation :
Suppliers' expectations of higher prices in the future might lead them to hold back supply now in anticipation of higher profits later, thus decreasing current supply.
Learning Objectives
- Ascertain the factors precipitating an escalation or decrease in the supply of a merchandise.
- Evaluate the consequences of input costs on the provision of goods.
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