If the demand for a good or service increases, how will prices affect supply? (1 point) Responses Rising prices will boost supply. Rising prices will boost supply. Falling prices will decrease supply. Falling prices will decrease supply. Rising prices will decrease supply. Rising prices will decrease supply. Falling prices will boost supply. Falling prices will boost supply.

Answer 1

The correct response is: Rising prices will boost supply.

When demand for a good or service increases, it typically leads to higher prices. In response to higher prices, producers are incentivized to increase their supply to take advantage of the opportunity for greater revenue.