An increase in the price of a good will a. increase supply. b. decrease supply. c. increase quantity supplied. d. decrease quantity supplied.

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Business

Leonidas Pittman

5 September, 03:13

An increase in the price of a good will a. increase supply. b. decrease supply. c. increase quantity supplied. d. decrease quantity supplied.

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Marina Oconnell · Answer 1

Answer: c. Increase in quantity supplied.

Explanation: an increase in the price of a good would lead to an increase in the quantity of the good supplied. This follows the fundamental economic theory of supply or the law of supply which states that all else being equal, an increase in the price of good and services would lead to a corresponding increase in the quantity of the good or services supplied. This is quite true and the rationale behind it is the potential increase in returns per unit of good sold to the supplier as a result of the increase in price.