Question

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:

Answer 1

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Decrease.

b) Increase.

c) Remain constant.

d) Fluctuate randomly around its equilibrium value.

And the correct answer is the option B: Increase.

Explanation:

To begin with, in the microeconomics theory the supply curve is known for being the one who shows what quantity will be supplied by the offerents given a particular amount of price that is already establish by the interaction between the forces of the market given a perfect competitive market as an example. So in that graphic the supply curve will always have a positive slope and that is due to the law of supply that establishes that there is a direct relationship between the price a good and its supply, so that means that if the price a good increases its quantity supplied will increase as well with it.