The market supply curve of a resource is
A)downward sloping
B)upward sloping
C)horizontal at the market price
D)vertical
E)determined by firms

Question

Quizplus · Accepted Answer

The market supply curve of a resource is upward sloping because as the price of the resource increases, firms have an incentive to supply more of it in order to earn more profit. As the price falls, firms may find it less profitable to produce the resource and may reduce their supply.

The Market Supply Curve of a Resource Is