Question

Which of the following situations would cause an increase in supply in the market for cleaning wipes?

1. The number of producers of cleaning wipes increases

2. The price of cleaning wipes increases

3. Cleaning wipes are a substitute for bleach, and the price of bleach increases

4. The number of people cleaning a lot increases

Answer 1

The option selected by you is absolutely correct. Because when the number of firms producing cleaning wipes increases then the supply curve shifts to its right. As a result the quantity supplied will increase.

Other options are incorrect because when price increases the quantity demanded would be less hence the supply will be less.

When price of bleach increases then the demand of cleaning wipes would get shifted not the supply.

When the number of people increases then the demand would increase. Therefore the first option is correct.