An increase in the quantity supplied suggests __________.

The correct answer is A movement up along the supply curve.

Key Points

• An increase in the quantity supplied refers to a higher quantity of a good or service that producers are willing to sell due to an increase in price.
• This change is depicted as a movement up along the existing supply curve rather than a shift of the curve.
• It indicates that the supply curve remains unchanged, but the quantity supplied at each price point increases.
• Such a movement is typically driven by higher market prices, which provide an incentive for producers to supply more.

Additional Information

• Supply Curve:
  • A graphical representation of the relationship between the price of a good and the quantity supplied.
  • It usually slopes upwards, indicating that higher prices lead to higher quantities supplied.
• Law of Supply:
  • States that, all else being equal, an increase in price results in an increase in quantity supplied.
  • This principle is fundamental to understanding market behavior and price mechanisms.
• Shifts in the Supply Curve:
  • Occurs when factors other than price, such as technology, production costs, or number of sellers, change.
  • Can result in a leftward (decrease in supply) or rightward (increase in supply) shift of the supply curve.
• Price Elasticity of Supply:
  • Measures the responsiveness of the quantity supplied to a change in price.
  • Helps in understanding how supply might react to different market conditions.