ObjectiveMcq
Print Protected
This page is protected for print. Use the website to view the content.
A supply curve slopes upward because:
Correct Answer: B — An increase in price gives producers an incentive to supply a larger quantity
Correct Answer: B
A supply curve slopes upward because an increase in price gives producers an incentive to supply a larger quantity. Higher prices reflect higher marginal revenue, which incentivizes producers to cover the higher marginal cost of producing additional units. This positive relationship between price and quantity supplied results in the upward-sloping supply curve.