A supply curve indicates that:
A) the quantity supplied of a good is higher when the price of that good is higher.
B) the quantity supplied of a good is higher when the price of that good is lower.
C) the supply for a good is higher when the price of that good is lower.
D) the supply for a good is higher when the price of that good is higher.

Question

Quizplus · Accepted Answer

A supply curve indicates the relationship between the price of a good and the quantity of that good that is supplied in the market. Typically, as the price of a good increases, producers are willing to supply more of that good to the market. This relationship is shown by a positively sloped supply curve. Therefore, choice A is the best answer because it correctly describes this relationship between the price of a good and the quantity supplied.

A Supply Curve Indicates That