The Impact of Rising Ketchup Prices on Supply

How do ketchup sellers respond to an increase in ketchup prices?

A. They decrease their quantity supplied of ketchup

B. They increase their quantity supplied of ketchup

Answer:

B. They increase their quantity supplied of ketchup

When ketchup prices rise, ketchup sellers increase their quantity supplied of ketchup due to the higher profitability. This is in accordance with the law of supply.

Explanation:

In economics, when ketchup prices rise, ketchup sellers increase their quantity supplied of ketchup. This is because the higher price of ketchup makes it more profitable for sellers to produce and sell more ketchup. According to the law of supply, as prices rise, the quantity supplied by producers increases.