A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:
A)Decrease.
B)Increase.
C)Remain constant.
D)Fluctuate randomly around its equilibrium value.

Question

Quizplus · Accepted Answer

According to the law of supply, an increase in the price of a good will motivate producers to supply more of the good, leading to an increase in the quantity supplied. Therefore, the correct answer is B.

A Simple Supply Curve Shows That an Increase in the Price