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

Currently Tire Producers Must Receive a Price of $50 Per