Question

Which factor would most likely cause the supply of a company's product to increase?

Answer 1

The raw materials used to manufacture the product become cheaper.  

Answer 2

The correct answer is: "a increase in the market price"

The supply function represents the quantity of a certain good or service that producers are willing tooffer in the market at different price levels. The law of supply states that there is a direct relationship between price and quantity supplied (ceteris paribus, hence, given that the rest remains equal). Therefore, when the price charged increases, the amount that producers are willing to offer increases.