Based on the supply curve for knee braces shown in the accompanying graph, which of the following statements is most likely correct?

• A. The supply of knee braces is unaffected by changes in price.
• B. As the price of knee braces increases, the quantity supplied increases.
• C. The supply curve for knee braces is downward sloping.
• D. As the price of knee braces increases, the quantity supplied decreases.

Answer: (B)

Verified step by step guidance

1. Understand the definition of a supply curve: it shows the relationship between the price of a good and the quantity that producers are willing to supply.
2. Recall the Law of Supply, which states that, all else equal, as the price of a good increases, the quantity supplied also increases. This is because higher prices provide an incentive for producers to supply more.
3. Analyze the shape of the supply curve: a typical supply curve is upward sloping, reflecting the positive relationship between price and quantity supplied.
4. Evaluate each statement in the problem by comparing it to the Law of Supply and the typical shape of the supply curve.
5. Conclude that the statement 'As the price of knee braces increases, the quantity supplied increases' aligns with the standard economic theory and the typical supply curve behavior.