Question
There is an increase in the supply of a good when there is __________.
An increase in the number of buyers
An increase of production capacity
Achieved market equilibrium
A decrease in the number of sellers.
An increase in the number of buyers
An increase of production capacity
Achieved market equilibrium
A decrease in the number of sellers.
Answers
GPT-4o mini
There is an increase in the supply of a good when there is **an increase of production capacity**. This refers to the ability to produce more of a good, which contributes to an increased supply in the market.
To clarify the other options:
- An increase in the number of buyers typically increases demand, not supply.
- Achieving market equilibrium means that supply and demand are balanced, but does not necessarily indicate an increase in supply.
- A decrease in the number of sellers would typically lead to a decrease in supply, not an increase.
To clarify the other options:
- An increase in the number of buyers typically increases demand, not supply.
- Achieving market equilibrium means that supply and demand are balanced, but does not necessarily indicate an increase in supply.
- A decrease in the number of sellers would typically lead to a decrease in supply, not an increase.