One reason supply curves have an upward slope is because
A) increased supply will require increased technology.
B) people will pay a higher price when less is supplied.
C) a higher price brings a greater profit, so firms want to sell more of that good.
D) to have more of the good supplied requires more firms to open.
E) None of the above answers is correct because supply curves have a downward slope.

Question

Quizplus · Accepted Answer

A higher price brings a greater profit, so firms want to sell more of that good. This is the basic principle of the law of supply, which states that as the price of a good increases, the quantity supplied by producers also increases.

One Reason Supply Curves Have an Upward Slope Is Because