The slope of the supply curve reflects a(n)
A)increasing variable cost.
B)decreasing variable cost.
C)increasing total cost.
D)increasing marginal cost.
E)decreasing marginal cost.

Question

Quizplus · Accepted Answer

The slope of the supply curve reflects the relationship between the price of a good and the quantity that suppliers are willing to produce and sell. As the price of a good increases, the quantity supplied by producers also increases. This reflects increasing marginal costs - as firms produce more units of a good, their costs per unit rise.

The Slope of the Supply Curve Reflects A(n)