Suppliers will supply more of a good when the price of that good rises because the opportunity cost of not producing that good has risen.

Name: Suppliers will supply more of a good when the price of that good rises because the opportunity cost of not producing that good has risen.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the price of a good rises, the potential profit from selling that good increases, making it more attractive for suppliers to produce and sell more of it, thus increasing the opportunity cost of not producing it.

Suppliers Will Supply More of a Good When the Price