What does a price increase generally do to the quantity supplied?

When the price of a good or service increases, it generally serves as an incentive for producers to supply more of that good or service to the market. This relationship is described by the law of supply, which states that, all else being equal, an increase in price results in an increase in the quantity supplied.

Producers are more likely to allocate resources towards the production of goods that are now more profitable due to higher prices, leading to an increase in output. This response to price changes is fundamental to understanding supply dynamics in economics, as it reflects producers' motivations to maximize profits.

In the context of this question, the other options do not align with this principle. A scenario where there is no effect on quantity supplied would contradict the economic theory associated with price changes. Similarly, a decrease in quantity supplied would imply that higher prices discourage production, which is counter to the behavior observed in most markets. Lastly, while a price increase may lead to increased demand in some cases, this is a separate concept related to consumers' behavior rather than producers' decisions regarding supply. Thus, the correct understanding emphasizes how a price increase generally leads to an increase in quantity supplied.