What happens when the price increases in relation to quantity supplied?

When the price of a good or service increases, it typically incentivizes producers to supply more of that good or service to the market. This phenomenon is rooted in the principles of supply and demand. As prices rise, the potential for higher profitability attracts suppliers, leading them to increase production and offer a larger quantity of the good for sale.

This relationship is fundamental to the law of supply, which states that all else being equal, an increase in the price of a good will result in an increase in the quantity supplied. Suppliers are more likely to allocate resources and labor to produce more when they can sell their products at higher prices.

While the other options present different scenarios, they do not align with this established economic principle. For instance, a decrease in quantity supplied or a situation where quantity supplied remains the same would contradict the motivation for suppliers to respond to price signals. Similarly, a decrease in quantity demanded may occur alongside a price increase, but it does not directly address the relationship between price changes and the quantity supplied.