Question

The fundamental reason why most supply curves are upward sloping is that Group of answer choices a higher price never reduces quantity supplied by enough to lower total revenue and so higher production is motivated. consumers substitute lower-priced goods for higher-priced goods. the quantity supplied increases as more firms enter the market. higher production raises the opportunity costs of production and so price must rise to induce more output.

Answer 1

The answer is: the quantity supplied increases as more firms enter the market.

Step-by-step explanation:

As the price of a product increases, suppliers /existing and new suppliers) are willing to offer a larger quantity of that product. But if the price of a product decreases, suppliers will be willing to offer smaller quantities of that product. (Law of Supply).

For example, if the price of new cars was at least $1,000,000 per car, all the car manufacturers will be willing to produce cars at full capacity. But if they can only sell cars at $15,000 or less, only the smallest and cheapest cars will be sold, and the factories that build larger and more expensive cars will close.