Other things being equal an increase in quantity supplied can be caused by:

Question

Accepted Answer

The correct option is 1:

In microeconomics, the distinction between "quantity supplied" and "supply" is crucial. An "increase in quantity supplied" refers to a movement *along* the existing supply curve, and it is caused exclusively by a change in the product's own price. This relationship is defined by the Law of Supply, which states that, holding all other factors constant (the "ceteris paribus" condition), as the price of a commodity rises, its quantity supplied increases, because higher prices translate into higher profit opportunities for producers. Since the question specifies "other things being equal," a movement along the curve must be the only cause, making a rise in the commodity's price the correct answer.

The incorrect option is 2:

An improvement in the technique of production is a change in a non-price factor of supply. This would lead to a decrease in the cost of production, causing the entire supply curve to shift to the right. This change is referred to as an "increase in supply," not an increase in the *quantity* supplied.

The incorrect option is 3:

A rise in the income of the consumer is a determinant of *demand*, not supply. An increase in consumer income would cause the demand curve to shift, leading to an increase in demand (or a shift in the quantity demanded at a new equilibrium price), but it does not directly cause an increase in the quantity supplied by moving along the supply curve.

The incorrect option is 4:

The given market is not a causal factor for an increase in quantity supplied. This option is too vague to describe an economic mechanism. Price changes are the specific factor that dictates a movement along the supply curve within any functioning market structure.