The Fundamental Reason Why Most Supply Curves Are Upward Sloping

question 182

Multiple Choice

The fundamental reason why most supply curves are upward sloping is that

• A) consumers substitute lower-priced goods for higher-priced goods.
• B) the quantity supplied increases as more firms enter the market.
• C) a higher price never reduces quantity supplied by enough to lower total revenue and so higher production is motivated.
• D) higher production raises the opportunity costs of production and so price must rise to induce more output.