For a supply curve, an increase in the price of a commodity will result in?
Answer Details
An increase in the price of a commodity will result in an increase in the quantity supplied. This is because, as the price of a commodity rises, suppliers are willing to produce and supply more of it to the market in order to take advantage of the higher price and earn more profit. This relationship between price and quantity supplied is known as the law of supply, which states that there is a positive relationship between price and quantity supplied, ceteris paribus (i.e., assuming all other factors remain constant). Therefore, when the price of a commodity increases, suppliers are incentivized to produce and sell more of it, resulting in an increase in the quantity supplied.