When there is an increase in quantity supplied,
A)producers are forced to supply more by government mandate.
B)producers are displaying a decreased willingness to produce because price has risen.
C)technology must have improved.
D)there must have been an increase in output price, ceteris paribus.
E)consumers are unlikely to buy the additional product.

Question

Quizplus · Accepted Answer

An increase in quantity supplied means that producers are willing and able to supply more at any given price. This could be due to a number of reasons, but the most common one is an increase in the output price, ceteris paribus (all other things being equal). As the price of the product rises, producers see an opportunity to earn more profits and are thus incentivized to increase their output.

When There Is an Increase in Quantity Supplied