Questions: Suppose that most of the landlords in the area are increasing rent along with Charles and Ebony's landlord. What will happen to the quantity of rental units supplied in that area, according to the law of supply? The quantity of rental units supplied will stay the same. The quantity of rental units supplied will decrease. The quantity of rental units supplied will increase.

The answer is the third one: The quantity of rental units supplied will increase.

Explanation for each option:

1. The quantity of rental units supplied will stay the same: This option is incorrect because, according to the law of supply, when the price of a good or service increases, the quantity supplied typically increases as well. Landlords are likely to supply more rental units to take advantage of higher rents.

2. The quantity of rental units supplied will decrease: This option is incorrect because a decrease in the quantity supplied would typically occur if the price were to decrease, not increase. Higher rents provide an incentive for landlords to supply more units.

3. The quantity of rental units supplied will increase: This option is correct. According to the law of supply, an increase in rent (price) will generally lead to an increase in the quantity of rental units supplied, as landlords are motivated to offer more units to maximize their revenue.

In summary, when rents increase, the quantity of rental units supplied is expected to increase, following the law of supply.