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An upward-sloping supply curve shows that

A.there is an inverse relationship between price and quantity supplied.
B.sellers are willing to sell less when the prices are higher in the market.
C.there is no relationship between price and quantity supplied.
D.there is a positive relationship between price and quantity supplied.

1 Answer

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Final answer:

An upward-sloping supply curve illustrates a positive relationship between price and quantity supplied, where higher prices lead to a higher quantity supplied, consistent with the law of supply.

Step-by-step explanation:

An upward-sloping supply curve demonstrates a fundamental concept in economics known as the law of supply. It indicates that there is a positive relationship between price and quantity supplied. This means that as the price increases, sellers are incentivized to supply a greater quantity of the good or service. Conversely, when prices fall, the quantity supplied tends to decrease as well. This relationship is captured by the upward slope of the supply curve on a graph where the vertical axis represents price and the horizontal axis represents quantity supplied.

The lifting effect of higher prices on quantity supplied underscores the basic principle that producers are more willing to produce and sell more of an item when they can receive a higher price for it, facilitating a tradeoff between the quantity they supply and the price they can obtain.

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