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an increase in the cost of raw materials

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12y ago

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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 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.


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.


Which condition leads to an increase of supply?

An increase in supply can occur when producers are incentivized to produce more goods, often due to factors such as a decrease in production costs, technological advancements, or favorable government policies, such as subsidies. Additionally, an increase in the number of suppliers in the market can also lead to an increased overall supply. When these conditions are met, suppliers are more willing and able to offer more goods at various price levels.


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.


Which is not an element of deflation?

the supply of goods and services leads to lower prices


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


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

they rise