mschXiurub9rownjayl
Answered

The following example illustrates which of the following factors that can cause a shift in supply? If the price of lumber decreases, the Crystal Match Company would increase its supply of matches, because it would be making more profit off of each box.

Achanges in technology
Bgovernment involvement
Cchanges in the prices of inputs
Dchanges in the prices of other goods

Verified Answer :

The answer is C. Changes in prices of inputs

Lumber is the raw material in producing matches ( the inputs). If the price of lumber is currently dropped, it is rational for the company to increase the supply of matches to gain more profit.

So option C is an appropriate answer in this case

Related Questions