Factors Affecting Quantity Supplied of Perfume

What is most likely to cause an increase in the quantity supplied of perfume?

a. an increase in the salaries paid to perfume makers.

b. an increase in the price of perfume.

c. an improvement in perfume-making technology.

d. an increase in the number of sellers of perfume.

Final answer:

An increase in the number of sellers of perfume is most likely to cause an increase in the quantity supplied of perfume.

In this question, we are asked to identify the factor that is most likely to cause an increase in the quantity supplied of perfume. Let's analyze each option:

An increase in the salaries paid to perfume makers: While an increase in salaries may incentivize perfume makers to produce more, it does not directly affect the quantity supplied of perfume. Therefore, this option is less likely to cause an increase in the quantity supplied.

An increase in the price of perfume: An increase in the price of perfume would typically lead to a decrease in the quantity supplied, as producers would be able to earn higher profits by selling fewer units at a higher price.

An improvement in perfume-making technology: An improvement in technology can increase the efficiency of perfume production, allowing producers to supply more perfume at a lower cost. This option has the potential to cause an increase in the quantity supplied.

An increase in the number of sellers of perfume: An increase in the number of sellers would lead to more competition in the market. This competition can incentivize sellers to increase their production and supply more perfume to capture a larger market share. Therefore, this option is most likely to cause an increase in the quantity supplied of perfume.

Based on the analysis, the factor that is most likely to cause an increase in the quantity supplied of perfume is an increase in the number of sellers of perfume.