Answer :

The incentive for producers to increase supply is the potential to obtain additional profits.

The incentive for producers to increase supply is the potential to obtain additional profit.

What is profit?

This is a term that refers to the gains that people make from the fact that they are engaged in a form of trade.

It is the financial gains that a business makes after they have removed the capital they used in production.

When production is increased, it would lead to more supply and hence more profit.

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