If the price of a product increases,ceteris paribus,we would expect

Question

Quizplus · Accepted Answer

Ceteris paribus, if the price of a product increases, we would expect the quantity supplied to increase as suppliers are willing to supply more of the product at higher prices. This is a movement along the supply curve, not a shift in the supply curve itself. Demand and supply are different concepts; demand refers to how much of a product consumers are willing and able to purchase at a certain price, while supply refers to how much of a product producers are willing and able to sell at a certain price. An increase in price does not increase demand (option B is incorrect) or decrease demand (option D is incorrect); it affects the quantity demanded, which is not an option provided. Option A is incorrect because it confuses an increase in supply (a shift of the supply curve) with an increase in the quantity supplied (a movement along the same curve).

If the Price of a Product Increases,ceteris Paribus,we Would Expect