Currently, tyre producers must receive a price of $50 per tyre to produce 5000 tyres. If the supply curve of tyres is upward- sloping, then, to produce one additional tyre, tyre producers will need to receive a price of
A) less than $50.
B) more than $50.
C) $50.
D) $0.

Question

Quizplus · Accepted Answer

An upward-sloping supply curve indicates that as the quantity supplied increases, the price must also increase. Therefore, to produce one additional tyre beyond the initial 5000, producers would require a price higher than $50.

Currently, Tyre Producers Must Receive a Price of $50 Per