Final answer:
When the price of a good increases, the quantity supplied increases, resulting in a movement along the supply curve rather than a shift of the curve itself. Thus, answer C is correct.
Step-by-step explanation:
According to the law of supply, when the price of a good increases, the quantity supplied also increases. This is because producers are more willing to supply more of a good when they can sell it at a higher price, as it may lead to higher profits. This relationship is represented on the supply curve, but it does not cause the supply curve itself to shift. Instead, a movement along the supply curve occurs. Therefore, the correct answer to the given question is C. The quantity supplied increases.
In economic terms, an increase in supply would indeed shift the supply curve to the right, as explained by Figure 3.10 in the context of supply shifts. However, this refers to an increase in the overall supply and not a response to a price change. The scenario where the price of the good increases, leading to a higher quantity supplied, would result in moving up along the existing supply curve, not shifting the entire curve.