As the price of a commodity increases, what happens to supply?
A) If the price increases, then the supply will decreases.
B) If the price increases, then the supply will remain constant.
C) If the price increases, then the supply will increases.

Question

As the price of a commodity increases, what happens to supply? ​
A) If the price increases, then the supply will decreases.
B) If the price increases, then the supply will remain constant.
C) If the price increases, then the supply will increases.

Quizplus · Accepted Answer

When the price of a commodity increases, producers are typically motivated to supply more of it to the market to capitalize on the higher prices, leading to an increase in supply.

As the Price of a Commodity Increases, What Happens to Supply