Question

One reason why the windshield supplier increases quantity supplied as price increases is because input costs tend to ____________ as quantity supplied _____________.
A. Increase, decrease
B. Increase, remains constant
C. Decrease, increase
D. Decrease, remains constant

Answer 1

Option E is not given which is Increase, increase

One reason why the windshield supplier increases quantity supplied as price increases is because input costs tend to Increase as quantity supplied Increases .

Explanation:

Additional quantities are supplied for a particular price. The uplinked supply curve is moved to the centre where there is more desire to sell at higher prices because more vendors are willing to deliver at a cheaper price and therefore raise volume for a particular price.

An "increase in demand" indicates that the demand curve has actually moved, while an "increasing the supply" applies to a shift across a particular demand curve as a result of price increases.