Question

This graph shows a supply curve.

A graph titled Supply Curve has Quantity Supplied on the x-axis, from 0 to 50 in increments of 10, and price on the y-axis, from 0 to 15 dollars in increments of 5 dollars. A line is drawn with points (10, 5 dollars), (20, 7 dollars), (30, 10 dollars), (40, 13 dollars), and (40, 15 dollars).

What happens when the price of a good increases?

The quantity of goods that are produced increases.
The producer of the good is certain to make less money.
The quantity of goods that are produced decreases.
The quantity of goods that are produced stays about the same.

Answer 1

The quantity of goods that are produced increases.

Explanation: the supply curve slopes upward — higher prices give producers an incentive to supply more, so quantity supplied rises as price rises.