1. Arbitrage restores the no-arbitrage condition by increasing the demand for the underpriced asset and increasing the supply of the overpriced asset. 2. Cutting income tax will increase the supply of labour input, chiefly by attracting new workers into the labour force. 3. If government subsidizes the production of some good, it in effect lowers costs and increases supply. 4. The affordability problem is not simply a matter of increasing the supply of homes. 5. Thus a higher wage rate increases the supply of hours of work, but reduces the demand for hours of work. 6. Normally, when demand and supply are out of sync, you either increase the supply, or you adjust the price mechanism. 7. The signs are that other parishes in this region were equally active in increasing their supply of pastures and meadows. 8. If business people generate greater demand for their products through good marketing, they can increase the supply and bring in greater revenue. 9. An increase in demand for money raises interest rates, which in turn increases the supply of money. |