Why is the AS curve upward-sloping?
A)Because,since nominal wages increase when production rises,then so too must the price level.
B)A higher price means higher total profits and therefore firms will produce more.
C)Higher prices mean higher real wages and therefore firms must produce more to in order to maintain profit levels.
D)Higher prices increase the demand and therefore the quantity supplied must also increase.

Question

Quizplus · Accepted Answer

The AS curve is upward-sloping because higher prices typically lead to higher profits, incentivizing firms to increase production.

Why Is the AS Curve Upward-Sloping