The short-run supply curve slopes upward because
A) profits increase at higher price levels.
B) productivity increases at higher price levels.
C) wages increase at higher output levels in the short run.
D) resource costs increase at higher price levels.

Question

Quizplus · Accepted Answer

In the short run, as prices increase, firms are willing to supply more of their goods or services because they can achieve higher profits at these higher price levels. This relationship between price and quantity supplied is what causes the short-run supply curve to slope upward.

The Short-Run Supply Curve Slopes Upward Because