Which of the following statements about the supply curve is TRUE?
A) As the price of a good rises, it becomes profitable to sell the higher-cost good.
B) As the price of a good rises, it becomes profitable to sell only the lower-cost good.
C) All sellers are willing to sell a good only when the price is very high.
D) All sellers are able to sell a good only when the price is very low.

Question

Quizplus · Accepted Answer

As the price of a good rises, it becomes profitable for sellers to produce and sell the good at a higher cost, and thus the quantity supplied increases. This is reflected in a positive slope of the supply curve. Option B is incorrect because it suggests that only lower-cost goods become profitable, which is not always true. Options C and D are incorrect because they make extreme statements that are not supported by the basic principles of supply and demand.

Which of the Following Statements About the Supply Curve Is