The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?
A) The supply of salsa increases.
B) The supply of salsa decreases.
C) There is no change to either the supply of salsa or the quantity of salsa supplied.
D) There is no change to the supply of salsa, but the quantity of salsa supplied increases.
E) There is no change to the supply of salsa, but the quantity of salsa supplied decreases.

Question

Quizplus · Accepted Answer

An increase in the price of salsa does not change the supply curve itself (which is based on the costs of production and other factors), but it does lead to a movement along the supply curve, resulting in an increase in the quantity of salsa supplied.

The Price of Salsa Rises