Question 21
Theory of SupplyThe upward sloping of the supply curve indicates that
- A.more will be supplied as price rises.
- B.less will be supplied as price rises.
- C.supply is not a function of price
- D.supply is static and demand is dynamic
Show the answer and explanation
Answer: A (more will be supplied as price rises.)
Explanation
An upward-sloping supply curve shows that quantity supplied rises as price rises.