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: -False. Was this answer helpful?

Detailed explanation-3: -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-4: -Supply curves from profit-maximizing firms can be vertical, horizontal or upward sloping. While it is possible for industry supply curves to be downward sloping, supply curves for individual firms are never downward sloping.

Detailed explanation-5: -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.