A supply curve is positively sloped because
ECONOMICS
JAMB 2009
A supply curve is positively sloped because
- A. supply always exceeds demand
- B. demand always exceeds supply
- C. price is an incentive to consumers
- D. price is an incentive to producers
Correct Answer: D. price is an incentive to producers
Explanation
A supply curve is positively sloped because as the price of a commodity increase in the market, the amount supplied increases. Producers will be wiling to supply more of their products as prices increase.
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