Why Is the AS Curve Upward-Sloping

question 18

Multiple Choice

Why is the AS curve upward-sloping?

• A)Because,since nominal wages increase when production rises,then so too must the price level.
• B)A higher price means higher total profits and therefore firms will produce more.
• C)Higher prices mean higher real wages and therefore firms must produce more to in order to maintain profit levels.
• D)Higher prices increase the demand and therefore the quantity supplied must also increase.

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Definitions:

Faster Transportation

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Lower Inventories

A strategy aiming to reduce the quantity of goods or materials a company holds in stock to minimize holding costs and increase efficiency.

More Warehouses

The strategy of increasing storage space to manage inventory more effectively, improve distribution speed, and meet customer demand.

Protein Feed

A type of animal feed that is high in protein content, used to nourish livestock and improve their growth, development, and productivity.