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 eggs will increase the supply of eggs."
(II) "As the cost of producing eggs rises, the supply of eggs 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