Question

Which determinant MIGHT increase supply in the market?

A) an increase in the price of complementary goods
B) an increase in the number of sellers of a product
C) an increase in the number if consumers in the market
D) an increase in the price of inputs to make the product

Answer 1

B) an increase in the number of sellers of a product

Answer 2

The Correct Answer is B.

Step-by-step explanation:

There are various factors which help in the Increase supply in the market, these factors are such as:

• An improvement in labor productivity which lowers unit labor costs.
• A Downward in the world price of products and raw materials that are imported.
• The entry of new sellers and products into the market.
• Indirect tax on producers is reduced in the large size.
• A government subsidy to cover some of the supply costs of firms.