The Supply Curve of a Good Slopes Upward to the Right

question 42

Multiple Choice

The supply curve of a good slopes upward to the right because of

• A)technological improvements over time.
• B)the law of supply.
• C)the law of demand.
• D)the existence of substitutes in production.
• E)the fact that prices tend to rise over time.

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Definitions:

Buyer Power

The influence and negotiating power that consumers or purchasing agents have over sellers in an economic marketplace.

Decrease Buyer Power

Strategies or market conditions that reduce the negotiation leverage of buyers, enhancing the seller's position.

Command A Higher Price

Being able to sell goods or services at a price above the average due to perceived added value, quality, or brand reputation.

Resource Based Perspective

A management tool used to identify and evaluate resources within an organization to gain and sustain competitive advantage.