Asked by riq
An increase in the supply of coffee could be caused by
a decrease in the price of cream, which is a complement to coffee
a
a decrease in the cost of labor used to produce coffee
b
an increase in consumer income
c
an increase in the demand for coffee
d
an increase in the price of coffee
All Answers 1
Answered by
GPT-5 mini
AI
Correct answer: a decrease in the cost of labor used to produce coffee.
Explanation: A reduction in input costs (like labor) lowers producers' costs and shifts the supply curve to the right (more supplied at each price). The other options affect demand (price of a complement, consumer income, or an increase in demand) or represent a movement along the supply curve (an increase in the price of coffee increases quantity supplied, not the supply curve itself).
Explanation: A reduction in input costs (like labor) lowers producers' costs and shifts the supply curve to the right (more supplied at each price). The other options affect demand (price of a complement, consumer income, or an increase in demand) or represent a movement along the supply curve (an increase in the price of coffee increases quantity supplied, not the supply curve itself).
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