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.

Question

KEERTHIGA N M 19MBR052 · Accepted Answer

Final Answer : A, Explanation :  As producers increase production, they must allocate additional resources that have higher opportunity costs, leading to increasing marginal costs and higher prices needed to cover those costs. Therefore, the supply curve usually slopes upward.

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