The correct answer would be, Prices Fall.
When Prices Fall, business firms will collectively supply a higher quantity of output at any given price and the supply curve will shift to the right.
Explanation:
A supply curve is a curve that shows a relation between two variables. One is the cost or price of the good or service, and the other is the amount or quantity of the product.
Prices are represented on the x-Axis and the quantity is represented on the y-Axis of the curve. When there is a steady relationship between these two variables, the supply curve moves smoothly in the forward upward direction.
If the price of the product falls, business firms will supply a higher quantity of that product at any given price and as a result, the supply curve will shift to the right side.
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