If the demand for a good or service increases, how will prices affect supply?(1 point)

Question

Responses

Falling prices will boost supply.
Falling prices will boost supply.
Rising prices will decrease supply.
Rising prices will decrease supply.
Rising prices will boost supply.
Rising prices will boost supply.
Falling prices will decrease supply.

Answer 1

The correct response is:

Rising prices will boost supply.

When demand for a good or service increases, prices typically rise. Higher prices incentivize producers to supply more of that good or service, as they can earn higher revenues.