At low prices, only low-cost producers serve the market, but as market prices rise, higher cost-producers begin to serve the market.

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Quizplus · Accepted Answer

This is known as the supply curve in economics. As prices rise, more producers are incentivized to enter the market and supply goods, including those with higher production costs. At lower prices, only the producers with the lowest costs can profitably sell their goods.

At Low Prices, Only Low-Cost Producers Serve the Market, but as Market