A supply curve typically slopes upward because:
a. opportunity cost of production increases as the quantity supplied increases.
b. price and quantity supplied are inversely related.
c. quantity supplied is positively related to consumer income.
d. the substitution effect of a price change on quantity supplied is generally positive.
e. the income effect of a price change on quantity supplied is generally negative.
a. opportunity cost of production increases as the quantity supplied increases.
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What kind of elasticity is relevant when you are trying to figure out how a price cut by the burger shop next door will affect the demand for your pizza? Explain
What will be an ideal response?
If demand is inelastic, marginal revenue will be
a. positive. b. zero. c. negative. d. constant.
Less-developed countries are experiencing rapid population growth because birthrates are on the rise and mortality rates are falling
a. True b. False Indicate whether the statement is true or false
Refer to Figure 6.1. Assume that L1 represents the budget line before a price change. Point C represents the:
A. uncompensated effect on an increase in the price of soup.
B. compensated effect on a decrease in the price of soup.
C. uncompensated effect on a decrease in the price of soup.
D. compensated effect on an increase in the price of soup.