If the price of a product rises and as a result businesses increase their production, then __________. (LO5) a) supply has increased b) supply has decreased c) quantity supplied has increased d) quantity supplied has decreased e) both supply and quantity supplied have increased

We need to understand the concepts of supply and quantity supplied to find the correct answer. Supply refers to the overall capacity of a business to provide a good or service, while quantity supplied refers to the actual amount of the good or service provided at a specific price.

The price of a product has increased, and as a result, businesses increased their production. This means that at a higher price, businesses are providing more of the product.

Let's evaluate the given options based on the analysis of the situation: a) supply has increased: The statement explains the situation but does not fully address the change in production. b) supply has decreased: This option is not correct, as businesses increased production, not decreased it. c) quantity supplied has increased: This option accurately describes the situation, where businesses have increased the amount provided at the higher price. d) quantity supplied has decreased: This option is not correct, as businesses increased production, not decreased it. e) both supply and quantity supplied have increased: This option includes the correct answer but adds an unnecessary component (increase in supply) that is not directly related to the given situation.

Based on our analysis and comparison, the correct answer is: c) quantity supplied has increased