Understanding the Law of Supply: How Increasing Prices Affect Quantity Supplied

What type of slope is a supply curve?

Upward/direct relationship

A supply curve is a positive slope, meaning that as the price of a good or service increases, the quantity supplied also increases, ceteris paribus (all other factors held constant). This relationship is due to the law of supply, which states that producers are willing to supply more of a good at higher prices, as it becomes more profitable to do so. Conversely, as the price of a good or service decreases, the quantity supplied also decreases, since it becomes less profitable for producers to supply that good or service.

More Answers:
Understanding Shortages in Social Science: Causes, Impacts, and Solutions
Understanding Market Demand & Market Supply: The Key Concepts of Economics
Exploring the Dynamics of Markets: Understanding Supply and Demand, Competition, and Consumer Behavior

Error 403 The request cannot be completed because you have exceeded your quota. : quotaExceeded

Share:

Recent Posts

Mathematics in Cancer Treatment

How Mathematics is Transforming Cancer Treatment Mathematics plays an increasingly vital role in the fight against cancer mesothelioma. From optimizing drug delivery systems to personalizing

Read More »