Recall the discussion in your textbook about the supply curve for oil. What explains why the supply curve for oil is positively sloped?
A) As the price of oil rises, producers' costs of drilling oil also rise.
B) As more and more producers enter the market, the price of oil rises.
C) As the price of oil rises, consumers buy less and less oil.
D) As the price of oil rises, more producers enter the market.

Question

Quizplus · Accepted Answer

As the price of oil rises, it becomes more profitable for producers to extract and sell oil, encouraging more producers to enter the market, thus increasing the quantity supplied.

Recall the Discussion in Your Textbook About the Supply Curve