The general law of diminishing returns partially accounts for the upward slope of supply curves for individual firms and for market supply curves. Additional production eventually becomes ever more costly as output levels grow. Thus, firms may require higher prices to justify expanding their outputs. Moreover, higher prices embody greater incentives for firms to produce more output because profit opportunities are enhanced. A similar logic applies for the economy as a whole.
upward
upward
fact that price and quantity supplied are inversely related
there are three reasons why the SRAS curve is upward sloping Sticky wages theory Sticky Price Theory misperception theory
Actually, supply curve slops upward 9a positive slope). This is due to the fact that as price rises, suppliers would see more benefit in producing these goods (as being able to make more profit).
upward
upward
fact that price and quantity supplied are inversely related
there are three reasons why the SRAS curve is upward sloping Sticky wages theory Sticky Price Theory misperception theory
Actually, supply curve slops upward 9a positive slope). This is due to the fact that as price rises, suppliers would see more benefit in producing these goods (as being able to make more profit).
Upward-sloping
Supply curve will be upward sloping in two reason,the first reason is know as the income effect and the second is know as substitution effect.
Supply curves do not always slope from left to right. A supply curve can slope from the right and when this happens this means that there is a surplus of goods at a lower price.
upward and to the right
The three characteristics of a supply curve are the slope, shift, and the curve's position. Together they help determine supply and demand trends.
supplycurve is negative slope in decreasing cost industry
1. consumers buy goods that are less expensive