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An increase in market supply is caused by the following factors except  

Economics
WAEC 2025

An increase in market supply is caused by the following factors except

 

  • A. an increase in the price of the commodity
  • B. a reduction in the cost of raw materials
  • C. a favourable weather condition
  • D. an improvement in innovation and technology
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Correct Answer: Option A
Explanation

An increase in the price of the commodity does not cause an increase in market supply. In fact, it's the opposite. An increase in the
price of a commodity can lead to an increase in the quantity supplied (as suppliers are willing to supply more at higher prices),
but it does not shift the supply curve or increase market supply. The other options (improvement in innovation and technology,
reduction in the cost of raw materials, and favourable weather conditions) can all lead to an increase in market supply.


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