Why is the market supply curve upward sloping?
Understand the Problem
The question is asking for an explanation of the economic principle behind the upward slope of the market supply curve, which typically indicates that as the price of a good increases, the quantity supplied by producers also increases.
Answer
The supply curve is upward sloping because as the price of a good increases, producers are willing to supply more of it due to higher marginal costs being justified.
The supply curve is upward sloping because as the price of a good increases, producers are willing to supply more of it due to higher marginal costs being justified.
Answer for screen readers
The supply curve is upward sloping because as the price of a good increases, producers are willing to supply more of it due to higher marginal costs being justified.
More Information
A common reason for the upward slope is the law of supply, which states that an increase in price leads to an increase in the quantity supplied.
Tips
Confusing the supply curve with the demand curve is a common mistake. Remember, an upward sloping supply curve indicates producers are willing to supply more at higher prices.
Sources
- Upward-Sloping Supply Curve | Overview, Graph & Examples - study.com
- Solved The market supply curve is upward-sloping because a - Chegg - chegg.com
- Why does the market supply curve of a resource slope upward? - homework.study.com
