What happens to the supply curve when there is an increase in consumer demand?

When there is an increase in consumer demand, the supply curve does not shift directly; rather, it is the market dynamics of demand and supply that change. An increase in consumer demand typically results in higher prices for the goods as consumers are willing to pay more to secure them. This higher price incentivizes producers to increase the quantity supplied to the market.

The supply curve itself represents the quantity that suppliers are willing to provide at various price levels and remains unchanged in terms of its position unless there is a factor that affects the supply itself, such as changes in production costs or technology. Therefore, while the immediate effect of increased demand leads to a higher equilibrium price and quantity in the market, the shape and position of the supply curve remain the same in this scenario.

As market prices adjust due to increased demand, the movement along the supply curve reflects the changes in quantity supplied, but the supply curve itself does not shift. This reasoning aligns with why the choice stating that the supply curve does not shift is the correct answer.