In General,supply Curves Slope Upward to the Right Because

question 43

Multiple Choice

In general,supply curves slope upward to the right because

• A) increases in the price of a commodity lead to rightward shifts of the supply curve.
• B) rising prices motivate producers to offer more units for sale.
• C) technology progresses over time, increasing the ability of firms to produce more at existing prices.
• D) of increases in input prices as production is increased.
• E) empirical studies almost always show that this is the case.

---

Definitions:

Real-world Conditions

Circumstances or factors that occur naturally in everyday life, outside of controlled experimental settings.

Spurious Relationships

Apparent associations between two variables that are not causally related but may be due to a third, unaccounted-for variable.

Internal Validity

Relates to experimental design. A study has internal validity when a cause-and-effect relationship between variables is clearly demonstrable and observed changes can be attributed to a defined causal variable and not to any other possible variables.