Final answer:
The increase in price leads to an increase in the quantity supplied for a commodity, reflecting a movement along the supply curve rather than a shift. An actual shift in the supply curve to the right signifies an increase in supply due to factors like improved technology or reduced costs. option (3)
Step-by-step explanation:
When the price of a commodity increases, you can generally expect the quantity supplied to increase. This is because producers are willing to supply more of a commodity when they can sell it at a higher price. The increase in supply at every given price level does not shift the supply curve itself; instead, it represents a movement along the supply curve. However, if there is an improvement in technology or a reduction in production costs, this would induce a rightward shift in the supply curve, representing an increased supply at every price level.
An increase in the need or demand for a product would cause a rightward shift in the demand curve, but this is not related to the change in quantity supplied due to a price increase as described in the question.