In Which Statement(s) Is "Supply" Used Correctly? (I) "An Increase

Multiple Choice

In which statement(s) is "supply" used correctly? (I) "An increase in the price of flour will increase the supply of flour."
(II) "As the cost of producing flour rises, the supply of flour will tend to fall."

A) in both statements I and II
B) in statement I only
C) in statement II only
D) in neither statements I nor II