An increase in supply of a product results when __________.
:
taxes on the product are increased
the companies that produce the product have higher materials costs
technological innovations are introduced in the manufacturing process
the government reduces subsidies on the product
I say C
i would agree... faster production
You are correct, an increase in supply of a product usually occurs when technological innovations are introduced in the manufacturing process.
To arrive at this answer, let's understand the concept of supply. Supply refers to the quantity of a product or service that producers are willing to offer for sale at a given price in a given period of time. Several factors can influence the supply of a product, and in this case, we are looking for the factor that leads to an increase in supply.
Option A, taxes on the product being increased, is incorrect because higher taxes typically increase the cost of production for companies, which could potentially lead to a decrease in supply.
Option B, companies that produce the product having higher materials costs, is also incorrect because higher material costs can lead to a reduction in supply as it becomes less profitable for companies to produce the product.
Option C, technological innovations being introduced in the manufacturing process, is the correct answer. Technological innovations can lead to improvements in efficiency, productivity, and cost reduction in the production process. This, in turn, can increase the supply of the product as producers are able to produce and offer more units for sale.
Option D, the government reducing subsidies on the product, is not necessarily related to an increase in supply. Reductions in subsidies can affect the profitability and cost structure of producing the product, but it does not directly lead to an increase in supply.
Therefore, your choice of option C, technological innovations being introduced in the manufacturing process, is the correct answer.