increase in the supply of a product can be caused by?
Answer Details
An increase in the supply of a product means that there are more units of the product available for sale. This can be caused by various factors, but one of the most common reasons is a fall in the cost of production. When the cost of production decreases, producers can afford to produce more units of the product, which increases the supply.
Other factors that can lead to an increase in supply include an increase in the income of consumers, which can lead to higher demand for the product and hence more production, and changes in taste and fashion of consumers, which can create new demand for a product.
However, an increase in the price of a product usually does not directly cause an increase in supply. Instead, it can lead to an increase in production in the short term, but if the price increase is not sustainable, the supply may decrease in the long run.