An increase in the price of a good will lead to an increase in the quantity supplied.

Question

Quizplus · Accepted Answer

According to the law of supply, an increase in price will lead to an increase in the quantity supplied, as producers are incentivized to supply more of the good in order to maximize their profits. However, this does not necessarily mean that the quantity supplied will increase indefinitely at higher prices, as there may be limits to the amount of the good that producers are able or willing to supply.

An Increase in the Price of a Good Will Lead