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An increase in supply typically occurs when production costs decrease, such as through advancements in technology or reductions in raw material prices. Additionally, favorable government policies, such as subsidies or tax incentives, can encourage producers to increase output. Increased competition in the market may also lead to an expanded supply as firms strive to capture market share. Lastly, expectations of higher future prices can motivate suppliers to produce more now.

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1w ago

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Related Questions

Which condition leads to an increase in supply?

an increase in the cost of raw materials


Explain the law of supply in your own words?

Law of supply: If demand is held constant, an increase in supply leads to a decreased price, while a decrease in supply leads etc


How does an increase in the supply of a good affect the elasticity of its supply?

An increase in the supply of a good typically leads to a decrease in the elasticity of its supply. This means that the quantity supplied does not change as much in response to changes in price.


How does an increase in supply affect the market equilibrium when the supply curve shifts to the right?

When the supply curve shifts to the right, it means there is an increase in supply. This leads to a lower equilibrium price and a higher equilibrium quantity in the market.


If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


If there an increase in the money supply that causes prices to rise and leads to inflation what happens to money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to the money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


What if there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


What factors contribute to an increase in supply?

Factors that contribute to an increase in supply include lower production costs, technological advancements, favorable weather conditions, and an increase in the number of producers entering the market.


A decrease in supply will cause an?

increase in equilibrium price and a decrease in equilibrium quantity, which leads to a shortage at the original price.


If there is an increase in the money supply that causes money to lose its purchasing power and leads to inflation what happens to prices?

they rise


Which is not an element of deflation?

the supply of goods and services leads to lower prices