An increase in the number of producers will:
a. increase the market supply, because the price will rise.
b. increase the market supply only when market demand increases too.
c. increase the market supply, because market supply is the sum of all individual supply curves.
d. increase the market supply only if each supplier has an identical supply curve.
e. decrease the market supply, because firms compete with each other and each firm will supply more.
Question 2
Which of the following events would increase the supply of tomatoes?
a. The introduction of mechanized tomato pickers, which raises the cost of production.
b. An increase in wages for the tomato pickers.
c. A decrease in the cost of fertilizers for the tomato plants.
d. Unseasonably hot, dry weather in the tomato-growing regions of the nation.
e. A decrease in the price of pasta products.
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