Which of the Following Explains Why Supply Curves Slope Upward

question 348

Multiple Choice

Which of the following explains why supply curves slope upward?

• A) prices and income
• B) increasing marginal cost
• C) resources and technology
• D) substitutes in production and complements in production

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Definitions:

Demand

The desire combined with the ability to purchase a specific quantity of a good or service at a particular price and time.

Supply

The total amount of a product or service available for purchase at any given price point in a market.

Purchasing Power Parity

A theory in economics that suggests that in the absence of transaction costs and other barriers, identical goods should have the same price in different countries when prices are expressed in a common currency.

Prices

Monetary values assigned to products and services which are determined by the interaction of supply and demand in the market.