Answer: Option A and B
Explanation: The given case relates to the law of supply.
As per the law of supply, the price and the quantity supplied of a good or service are positively related to each other. However there are other factors also which affects the demand such as the cost of production.
If the price of a commodity rises or its cost of production decreases then the profit margin of it increases for the supplier. This increased margin works as an incentive to produce and supply more to the market.
Hence the correct option is A and B.
