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To answer why the supply curve has a positive slope, we must understand the nature of supply and what the curve represents.
The supply curve indicates that for the market to increase its output (Q), prices must increase (P). Why? The market supply curve is the collection of the firms' supply curves. Firms face rising marginal costs of production due to diminishing marginal returns to capital and labour (MPL, MPK decrease as L and K increase). That is, the second derivatives of Q(L) and Q(K) are negative. This means that if firms face increased demand and need to produce more output, they will face increasing costs as they produce this greater output. As a result, the price that they must receive to produce this output increases, in order to continue to receive a zero profit in a perfectly-competitive market.
The explanation provided below describes the supply curve.
The supply curve has a positive slope because of the relationship between a price change and quantity supplied. The Law of Supply tells us that as prices increase quantity supplied will increase as well and vise versa. The relationship between price and quantity supplied is positive or direct.
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Why does the supply curve slope down?
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).
What direction does the supply curve slope from the left to right?
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.
Why does a supply curve slope upwards?
it is so because, there exists a positive relation between price and supply, i.e wen price increase then supply olso tends to increase the same. . .
What are the three characteristics of a supply curve?
The three characteristics of a supply curve are the slope, shift, and the curve's position. Together they help determine supply and demand trends.
In which direction does the supply curve slope from the left to the right?
upward
Why does the supply curve slope down?
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).
What direction does the supply curve slope from the left to right?
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.
Why does a supply curve slope upwards?
it is so because, there exists a positive relation between price and supply, i.e wen price increase then supply olso tends to increase the same. . .
What are the three characteristics of a supply curve?
The three characteristics of a supply curve are the slope, shift, and the curve's position. Together they help determine supply and demand trends.
Supply curve slope downward?
supplycurve is negative slope in decreasing cost industry
In which direction does the supply curve slope from the left to the right?
upward
In which direction does the supply curve slope from left to the right?
upward
What does the slope of the supply curve reflect?
Rising Marginal Costs
For a given increase in supply the slope of both demand curve and supply curve affect the change in equilibrium quantity Is this statement true or false Explain with diagrams?
For a given increase in supply the slope of both demand curve and supply curve affect the change in equilibrium quantity Is this statement true or false Explain with diagrams?
The derivative finds the of a curve?
The gradient of the tangents to the curve.
Why supply curve positively slope?
Increasing population creates increasing demand for goods
Why does a demand curve slope downward left to right?
A demand curve slopes downward left to right because the relationship between price and demand is negative - as price drops demand rises. The opposite is true for a supply curve where as price rises supply rises - the relationship is positive so the supply curve slopes upward from left to right. Nova net answer- because demand decreases as price increases
