How does an increase in price affect supply? Option 1: It decreases the quantity supplied. Option 2: It does not affect the quantity supplied. Option 3: It increases the quantity supplied. Option 4: It decreases demand.

The answer is 'It increases the quantity supplied.'. View full solution:

CUET Economics - How does an increase in price affect supply? | PYQs + Solutions

CUET Economics 2025 29 May Shift 1

Micro

Easy

It decreases the quantity supplied.

It does not affect the quantity supplied.

It increases the quantity supplied.

It decreases demand.

✅ Correct Option: 3