Holding everything else constant,as the price of natural gas rises,selling natural gas becomes
A) more profitable,and the quantity supplied falls
B) less profitable,and the quantity supplied rises
C) less profitable,and the quantity supplied falls
D) more profitable,and the quantity supplied rises
E) more profitable,but the quantity supplied does not change

Question

Quizplus · Accepted Answer

When the price of natural gas rises, it becomes more profitable for suppliers to sell the product, and therefore they will increase the quantity supplied to the market in order to take advantage of the increased profits. This is consistent with the law of supply, which states that as the price of a good increases, the quantity supplied of that good will increase as well. Therefore, the correct answer is D, more profitable and the quantity supplied rises.

Holding Everything Else Constant,as the Price of Natural Gas Rises,selling