Question

Which of the following would cause the current supply of tablets to decrease? *

An economic resurgence, which increases the amount that people are willing to spend on personal electronics

An increase in the price of ear buds (headphones) for tablets

The expectation that the future price of tablets will increase

A decrease in the wages offered to manufacturers of tablets

Answer 1

The correct option is: The expectation that the future price of tablets will increase

this causes the producers to produce less and sell less tablets in the market. This decreases the current supply of tablets and the producers will wait for the future prices of tablets to rise and resume the supply for tablets.

Other options are wrong because:

An economic resurgence, which increases the amount that people are willing to spend on personal electronics : This would cause a rise in demand for electronics.

An increase in the price of ear buds (headphones) for tablets : Complements goods, both are used together, so would impact the demand for tablets.

A decrease in the wages offered to manufacturers of tablets: would cause the market supply for tablets to rise.