Question

Which of the following will not cause an increase in supply?

A. an expectation of higher prices in the future
B. a decrease in the number of sellers
C. a decrease in input prices
D. lower cost technol

Answer 1

Expecting higher prices in the future will not cause an increase in supply.

Step-by-step explanation:

An expectation of higher prices in the future will not cause an increase in supply. Expecting higher prices will instead lead to a decrease in supply as sellers would prefer to hold on to their products in hopes of selling them at a higher price later on.