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WAEC Economics 2014 Question 8

Question 8

Theory of Supply

A normal supply curve has a positive slope which indicates that

  1. A.sellers are willing to sell more at a lower price.
  2. B.sellers are indifferent to prices.
  3. C.sellers are willing to sell more at a higher price.
  4. D.there is always a fixed supply.
Show the answer and explanation

Answer: C (sellers are willing to sell more at a higher price.)

Explanation

Higher prices make production more profitable, so more is supplied.