The supply curve slopes upward when graphed against ,__________ because of____________ .

Question

Quizplus · Accepted Answer

The supply curve shows the relationship between the price of a good and the quantity supplied by producers. As the price of the good increases, producers are willing to supply more of it because they can make a higher profit. However, as they produce more of the good, the marginal cost of production tends to increase, which is why the supply curve slopes upward. Therefore, choice A is the correct answer because it states that the supply curve slopes upward because of increasing marginal cost as the price of the good increases.

The Supply Curve Slopes Upward When Graphed Against ,__________ Because