A producer would increase the supply of a product in the scenario of an increase in demand. When demand for a product rises, producers are incentivized to produce more to meet that demand and capitalize on potential increased revenue. The other scenarios, such as an unchanging demand, a seasonal decline in demand, or a sizable decrease in demand, would not motivate a producer to increase supply.
Which scenario would cause a producer to increase the supply of a product?
an unchanging demand
an increase in demand
a seasonal decline in demand
a sizable decrease in demand
1 answer