A typical supply curve shows that an increase in the price of a good will cause the quantity supplied to:
A)decrease.
B)increase.
C)remain constant.
D)fluctuate randomly around its equilibrium value.

Question

Quizplus · Accepted Answer

According to the law of supply, producers are willing to supply more goods at higher prices. As a result, an increase in the price of a good will incentivize producers to increase their quantity supplied. This positive relationship between price and quantity supplied is reflected in a typical supply curve, which slopes upward from left to right. Therefore, an increase in price will cause the quantity supplied to increase.

A Typical Supply Curve Shows That an Increase in the Price