What does an upward-sloping supply curve show?
A) Suppliers expand production as the product price falls.
B) Suppliers are willing to increase production of their goods if they receive higher prices for them.
C) Buyers are willing to pay more for particularly scarce products.
D) Buyers are willing to buy more as the product price falls.

Question

Quizplus · Accepted Answer

An upward-sloping supply curve indicates that as the price of a product increases, suppliers are willing and able to produce more of it. This suggests that suppliers are motivated by profits and respond to market signals such as price changes. Therefore, choice B is the correct option. Choice A is incorrect because it implies a downward-sloping supply curve, which is not consistent with the description. Choice C is incorrect because it describes a situation where buyers are competing for a limited supply, whereas a supply curve represents the behavior of suppliers. Finally, choice D describes a demand curve, which shows the relationship between the quantity of a product demanded and its price.

What Does an Upward-Sloping Supply Curve Show