Question

This graph shows a supply curve. What happens when the price of a good increases? The quantity of goods that are produced increases. The producer of the good is certain to make less money. The quantity of goods that are produced decreases. The quantity of goods that are produced stays about the same.

Answer 1

A. The Quantity of Goods that are produced Increases.

Answer 2

The quantity of goods produced increases.

The economy is governed by the Law of Supply and Demand. The supply curve and the demand curve interact according to the price of the good. From the perspective of the consumer, it is interesting to pay a lower price for a larger quantity of the product. On the supply side, the opposite occurs. The producers have a stimulus to produce more when the price increases, because the possibility of profit is greater. This is described in the first alternative.