A producer would have an added incentive to enter a market if the:
A. prices for microwave oven sharply
B. price for tennis shoes sharply
C. supply of apples increased,
causing a surplus
D. supply of cell phones satisfied
(I think it's either A or B)
One decreases prices; the other increases prices. Only one of these answers would entice an investor to this market.
r u sure?
I'm sure. But if you're in doubt, check your textbook.