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.

1 answer

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.