If the price of a commodity increases as the result of increased demand, you would expect the:

Question

Quizplus · Accepted Answer

An increase in demand leads to an increase in the price for a commodity. This, in turn, creates an incentive for suppliers to produce more of the commodity to maximize profits. Therefore, the quantity supplied would increase, leading to a movement along the supply curve. The supply curve itself would not shift to the right, as that would indicate an increase in supply due to other factors besides demand.

If the Price of a Commodity Increases as the Result