An upward-sloping long-run supply curve suggests that:
A)when quantity supplied increases, price drops
B)the relationship between price and quantity supplied is inverse
C)a change in demand will not change price
D)this is an increasing-cost industry
E)this is a decreasing-cost industry

Question

Quizplus · Accepted Answer

An upward-sloping long-run supply curve suggests that this is an increasing-cost industry. This means that as the industry expands, the cost of production increases, which leads to an increase in the long-run supply price. Therefore, as the quantity supplied increases, the price also increases, and a change in demand can affect the price in the long run.

An Upward-Sloping Long-Run Supply Curve Suggests That