Question

The supply of a good available in a market is most likely to decrease when?

a. Companies believe that the product's selling price will go up.
b. New technology makes producing the project.
c. New regulations increase the cost of making the product.
b. The number of workers able to make the product increases.​

Answer 1

The answer is C. New regulations increase the cost of making the product.

Along with the cost to make the product being raised, the cost to purchase the product would also increase. If the product is more expensive, people will be less likely to show interest in it, reducing the demand for the said product, furthermore reducing its supply.