Question

1. which of the following is most likely to cause a decrease in the supply of strawberries?

○ some strawberry producers leave the market and begin producing kiwi.
○ increase in the price of strawberries
○ new investment in capital equipment that makes harvesting strawberries more efficient
○ none of the above.

Explanation:

• An increase in strawberry price causes a movement along the supply curve, not a supply shift.
• More efficient harvesting equipment increases strawberry supply.
• When producers leave the strawberry market for kiwi, the number of suppliers decreases, reducing strawberry supply.

Answer:

A. Some strawberry producers leave the market and begin producing kiwi.