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The law of supply implies that the supply curve is?
Upward-sloping
What does the law of demand suggest that most demand curves will be?
The law of supply predicts the supply curve will be upward sloping.
What characteristics lead to an upward-sloping supply curve?
Increasing opportunity costs.Increasing marginal costs.
Why does the short run aggregate supply curve slope upward?
there are three reasons why the SRAS curve is upward sloping Sticky wages theory Sticky Price Theory misperception theory
Why is the supply curve horizontal for a factor price taker yet the industry supply curve is upward sloping?
A factor price taker faces a horizontal supply curve because it can hire as many units of the factor as needed at the market-determined wage rate, without affecting that rate. In contrast, the industry supply curve is upward sloping because as the quantity of a factor demanded increases, the price of that factor tends to rise due to increased competition for limited resources, leading to higher marginal costs for producers. Thus, while individual firms can take factor prices as given, the overall industry responds to changes in supply and demand, resulting in an upward-sloping curve.
The law of supply implies that the supply curve is?
Upward-sloping
What does the law of demand suggest that most demand curves will be?
The law of supply predicts the supply curve will be upward sloping.
What characteristics lead to an upward-sloping supply curve?
Increasing opportunity costs.Increasing marginal costs.
Why does the short run aggregate supply curve slope upward?
there are three reasons why the SRAS curve is upward sloping Sticky wages theory Sticky Price Theory misperception theory
Why is the supply curve horizontal for a factor price taker yet the industry supply curve is upward sloping?
A factor price taker faces a horizontal supply curve because it can hire as many units of the factor as needed at the market-determined wage rate, without affecting that rate. In contrast, the industry supply curve is upward sloping because as the quantity of a factor demanded increases, the price of that factor tends to rise due to increased competition for limited resources, leading to higher marginal costs for producers. Thus, while individual firms can take factor prices as given, the overall industry responds to changes in supply and demand, resulting in an upward-sloping curve.
Is the long run aggregate supply curve upward sloping?
No, the long-run aggregate supply (LRAS) curve is typically depicted as vertical. This indicates that in the long run, the total output of an economy is determined by factors such as technology, resources, and labor, rather than the price level. In contrast, the short-run aggregate supply (SRAS) curve is upward sloping due to price and wage stickiness, allowing for temporary increases in output in response to higher demand.
Is it possible to construct a supply schedule for a specific good that is not upward sloping?
Yes, it is possible to construct a supply schedule for a specific good that is not upward sloping, particularly in cases of certain market conditions or interventions. For instance, a backward-bending supply curve may occur in labor markets where higher wages can lead to a decrease in the quantity of labor supplied as individuals prioritize leisure over work. Additionally, during periods of price controls or subsidies, the supply may not respond in the typical upward-sloping manner. Thus, while the general trend is upward sloping, exceptions exist under specific circumstances.
Is The aggregate demand curve downward sloping for the same reason that the demand curve for a single good is downward sloping?
true because it is still supply and demand downward sloping
How does a supply curve reflect the law of supply?
Companies will want to supply more goods/services at a higher price because they can make more profit this way. Therefore, the supply curve is upward sloping since at each increase in price, there will be a corresponding increase in quantity supplied. This exactly is the law of supply: businesses will supply more at higher prices.
What does the supply curve of a pure monopolist form look like?
The supply curve of a pure monopolist is not well-defined like that of a competitive firm because a monopolist sets prices based on demand rather than producing a specific quantity at a given price. Instead of a typical upward-sloping supply curve, a monopolist determines the quantity to produce by equating marginal cost with marginal revenue, and then uses the demand curve to set the price. Consequently, the monopolist's pricing and output decisions are influenced by the market demand, leading to a downward-sloping demand curve rather than a distinct supply curve.
What are typical shapes of marginal-benefit curves?
Marginal Benefit curve is usually downward sloping, while Marginal Cost is usually upward sloping.
What happen to price when supply is constant and demand increaes?
prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
