ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an upward slope, bottom left to top right.
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a downward slope, top left to bottom right.
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a horizontal line.
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a vertical line.
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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: -The supply curve is a visual representation of the law of supply, a microeconomic concept describing the relationship between the price of a product and a company’s willingness to make it. The supply curve slopes upward because as a product’s price rises, the business would tend to be more willing to make it.
Detailed explanation-3: -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). Note that this formulation implies that price is the independent variable, and quantity the dependent variable.
Detailed explanation-4: -The supply curve is upward sloping because as price increases, suppliers can justify producing at higher marginal costs as long as MC < P.
Detailed explanation-5: -The supply curve is upward sloping because, over time, suppliers can choose how much of their goods to produce and later bring to market.