ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: - Understanding the Supply Curve The supply curve slopes upward because as a product’s price rises, the business would tend to be more willing to make it. Also, since businesses are efficient and would exhaust the cheapest production inputs first, the cost of production tends to rise as output increases.

Detailed explanation-3: -Since slope is defined as the change in the variable on the y-axis divided by the change in the variable on the x-axis, the slope of the supply curve equals the change in price divided by the change in quantity.

Detailed explanation-4: -The slope of a typical demand curve moves downwards from left to right. This slope indicates that as price increases, demand falls, thus confirming the law of demand. On the other hand, a supply curve exhibits how the number of goods supplied depends on the market price.

Detailed explanation-5: -The supply curve is upward sloping because it reflects the higher price needed to cover the higher marginal cost of production.