Question

In the market for personal computers, which of the following would cause a decrease in supply?

Multiple Choice
Businesses are required to pay a higher tax on production of personal computers.
There is a reduction in consumer preference for personal computers.
The price of personal computers falls.
There is a decrease in price of plastic, an input into the production of personal computers.

Answer 1

An increase in tax on production of personal computers would cause a decrease in supply.

Step-by-step explanation:

In the market for personal computers, a decrease in supply would be caused by businesses being required to pay a higher tax on production of personal computers. This would increase the production cost for businesses, leading to a decrease in their willingness and ability to supply personal computers. The other options mentioned in the question would not cause a decrease in supply.

Learn more about Factors affecting supply in the market for personal computers