Question

The demand in a market for smartphones has increased, causing prices to rise. What effect will this likely have on the supply of smartphones?

A.
Supply will decrease, as always happens when price increases.

B.
The supply point will increase by moving along the existing supply curve; the curve itself will not shift.

C.
The supply point will increase by moving along the existing supply curve, and the entire curve will shift upwards as well.

D.
The supply curve will shift up according to the increased demand.

Answer 1

C. The supply point will increase by moving along the existing supply curve, and the entire curve will shift upwards as well.