The market supply curve is upward-sloping because a higher price implies that
(i) individual sellers can increase the output supplied.
(ii) more sellers can supply to the market.
(iii) the government supplies goods and services to the market.

Question

Quizplus · Accepted Answer

The upward slope of the market supply curve is primarily due to the fact that higher prices provide an incentive for individual sellers to increase their output supplied to the market. Additionally, higher prices may also attract more sellers to the market, leading to an increase in overall supply. The government's role in supplying goods and services is not directly related to the slope of the market supply curve.

The Market Supply Curve Is Upward-Sloping Because a Higher Price