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The Supply Curve has a positive slope because as the selling price of the product increases, the willingness of producers to create that product increases as well. With the greater incentive to make that product, production will rise in direct proportion to how much price increases.
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Why the aggregate supply curve has its particular shape?
The aggregate supply curve is positively sloped because at a higher price level, producers are more willing to supply more real output.
Why supply curve is positively sloped?
Increasing population creates increasing demand for goods
Why is the short run supply curve positively sloped?
The short run supply curve is positively sloped because it has positive outputs.The profits are high and maximised.Short run decision for a firm is the quickiest and the most risky way to maximise profits in the short period of time.In the short run decision profits are usually reached which means that the firm didn't loose so the curve must be positively sloped as the firm is not in minus. hope I helped.....
What is the key difference between the classical and Keynesian aggregate supply functions?
Classical Aggregate Supply function is vertical whereas the Keynesian Aggregate Supply function is positively sloped.
Why indifference curves are always negatively sloped?
its something to do with a non satiation assumption. ie if all the bundles on the indifference curve are "goods" (actively wanted products) then the indifference curve slopes downward from L to R. if there is a "good" and a "bad" on the curve then it will be positively sloped. (upward from L to R)
Why the aggregate supply curve has its particular shape?
The aggregate supply curve is positively sloped because at a higher price level, producers are more willing to supply more real output.
Why supply curve is positively sloped?
Increasing population creates increasing demand for goods
Why is the short run supply curve positively sloped?
The short run supply curve is positively sloped because it has positive outputs.The profits are high and maximised.Short run decision for a firm is the quickiest and the most risky way to maximise profits in the short period of time.In the short run decision profits are usually reached which means that the firm didn't loose so the curve must be positively sloped as the firm is not in minus. hope I helped.....
What is the key difference between the classical and Keynesian aggregate supply functions?
Classical Aggregate Supply function is vertical whereas the Keynesian Aggregate Supply function is positively sloped.
Why indifference curves are always negatively sloped?
its something to do with a non satiation assumption. ie if all the bundles on the indifference curve are "goods" (actively wanted products) then the indifference curve slopes downward from L to R. if there is a "good" and a "bad" on the curve then it will be positively sloped. (upward from L to R)
Why does the marginal cost curve correspond to the supply curve?
A perfectly competitive firm's supply curve is that portion of its' marginal cost curve that lies above the minimum of the average variable cost curve. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along it's marginal cost curve in response to alternative prices. Because the marginal cost curve is positively sloped due to the law of diminishing marginal returns, the firm's supply curve is also positively sloped.
Why lm curve is positively sloped?
money supply is constant . so the money holdings will be high and banks does not have enough money to give loans. so as a result they are forced to increase the rate.
Can the average costs rise while the marginal costs are declining?
MC is the change in Tc divide by change in quantity. MC will always be negatively sloped and ATC has positively sloped.
What is the shape of the marginal-revenue curve if the total-revenue curve is a positively sloped straight line?
it will be parallel to horizantal axis
Are fronts sloped or vertical?
They are sloped
Is perpendicular vertical?
Not necessarily. A perpendicular to a sloped line will be sloped. It will be at right angles to the sloped line, though.
Why is PPF negatively sloped?
why PPF in economics is negatively sloped
