A rise in the quantity supplied caused by a rise in the product's own price is called what?

A rise in the quantity supplied caused by a rise in the product's own price is called what?

• A. Extension in Supply
• B. Contraction in Supply
• C. Change in Supply
• D. Increase in Supply

Answer: (A)

When the price of a good changes and all else stays the same, producers move along the existing supply curve. A rise in price leads to a higher quantity supplied, so the response is a movement along the curve called an extension in supply. It reflects the positive relationship between price and quantity that the law of supply describes. This isn’t a change in supply, which would mean the entire supply curve shifts due to non-price factors like costs, technology, or taxes. It’s also not usually described as an increase in supply, which implies a shift of the whole curve to the right. And it’s not contraction in supply, which would be a decrease in quantity supplied from a price drop.

When the price of a good changes and all else stays the same, producers move along the existing supply curve. A rise in price leads to a higher quantity supplied, so the response is a movement along the curve called an extension in supply. It reflects the positive relationship between price and quantity that the law of supply describes.

This isn’t a change in supply, which would mean the entire supply curve shifts due to non-price factors like costs, technology, or taxes. It’s also not usually described as an increase in supply, which implies a shift of the whole curve to the right. And it’s not contraction in supply, which would be a decrease in quantity supplied from a price drop.