A Supply Curve Typically Slopes Upward Because

question 82

Multiple Choice

A supply curve typically slopes upward because:

• A)opportunity cost of production increases as 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.

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Definitions:

Autonomous Consumption

Consumption expenditure that occurs when income levels are zero, reflecting basic survival expenses.

International Oil Price

The cost per barrel of crude oil on the global market, influenced by supply and demand, geopolitical events, and other factors.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a commodity or service, leading to increased prices and reduced output.

OPEC

OPEC, the Organization of Petroleum Exporting Countries, is an international cartel whose mission is to coordinate and unify the petroleum policies of its member countries to ensure stable oil markets.