Question

Complete the sentence regarding the relationship between price and quantity supplied.

Answer 1

1. Direct 2.Upward Slopping

Answer 2

The correct options are as follows;
1. DIRECT.
Supply refers to the quantity of a product that a producer is willing to bring to the market. The higher the price of the product in the market, the more the producer will be willing to produce more product. For instance, if a product is been sold for $20 in the market and the price now increase to $50, the producer will prefer to produce more of that product in order to increase his profits, he will not be willing to produce another product that its price is lesser than $50. Thus, the higher the price, the more the quantity supplied; this shows a direct relation between price and quantity supplied.
2. UPWARD SLOPING.
The supply curve is a graphical representation that shows the relationship that exist between the price of a commodity and the quantity the supplier is willing to supply. The graph move upward from left to right [Upward sloping], thus showing that as the price is increasing, the quantity supply too will increase.