Question 15
Theory of SupplyA normal supply curve is usually positively sloped because the relationship between
- A.price and supply is positive
- B.demand and price is positive
- C.supply and price is negative
- D.price and demand is negative
Show the answer and explanation
Answer: A (price and supply is positive)
Explanation
Sellers offer more at higher prices, so price and quantity supplied move in the same direction: a positive relationship.