Which factor would cause an INCREASE in the supply of a good?

A) input prices rising
B) a fall in the price of the good
C) an increase in the number of sellers
D) expectations of future price increases

An increase in the number of sellers leads to an increase in the supply of the good because there are more producers now producing the good, which increases the quantity supplied. A rise in input prices (choice A) decreases the profits of producers and discourages them from producing more, leading to a decrease in supply. A fall in the price of the good (choice B) increases the quantity demanded by consumers, but producers might not respond by increasing the supply if the profits are low. Expectations of future price increases (choice D) might lead producers to hold onto their inventory, leading to a decrease in the supply of the good.