ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The statement, “The reason the supply curve slopes upward is that marginal cost is increasing, ” is False. The supply curve slopes upward from left to right because the quantity supplied will increase as the price offered for the supply increases.

Detailed explanation-2: -In most cases, the supply curve is drawn as a slope rising upward from left to right, since product price and quantity supplied are directly related (i.e., as the price of a commodity increases in the market, the amount supplied increases).

Detailed explanation-3: -False. Was this answer helpful?

Detailed explanation-4: -The supply curve will move upward from left to right, which expresses the law of supply: As the price of a given commodity increases, the quantity supplied increases (all else being equal).

Detailed explanation-5: -False. Demand curve slopes downward from left to right because of the law of diminishing marginal utility. According to this law, the utility/satisfaction of the consumer goes on decreasing with every additional consumption of the commodity and hence, the consumer will buy more goods only when the price decreases.