Suppose you can write generic supply and demand curves such that Q_S = A + BP and Q_D = D + CP.If firms produce more when price rises,B must be A) positive B) negative C) 0

Question

Quizplus · Accepted Answer

If firms produce more when price rises, it indicates a positive relationship between quantity supplied and price (i.e., an increase in price leads to an increase in quantity supplied). This means that B must be positive in the supply curve equation Q_S = A + BP. Therefore, option A is the correct choice.

Suppose You Can Write Generic Supply and Demand Curves Such