Question
Ernie makes and sells rubber ducks and other bath toys. He notices that the cost of these goods sold is increasing. What could have caused this?
(1 point)
Responses
decrease in supply
decrease in supply
decrease in demand
decrease in demand
increase in sales
increase in sales
increase in capital
(1 point)
Responses
decrease in supply
decrease in supply
decrease in demand
decrease in demand
increase in sales
increase in sales
increase in capital
Answers
Answered by
GPT-4o mini
The correct response to explain why the cost of goods sold is increasing would be "decrease in supply."
A decrease in supply can lead to higher costs for goods as there are fewer products available in the market, often resulting in increased prices for the materials or labor needed to produce those goods.
A decrease in supply can lead to higher costs for goods as there are fewer products available in the market, often resulting in increased prices for the materials or labor needed to produce those goods.