Question

A supply curve is upward-sloping because At higher prices sellers have a greater incentive to produce more, ceteris paribus. The law of supply states that as price rises, the quantity supplied increases. At lower prices sellers may not be covering their costs of production and are therefore willing to supply less. All of the answers are correct.

Answer 1

Answer:

All of the answers are correct.

Explanation:

The law of supply states that in a production process when the price of. Commodity increases the suppliers are more willing to supply more goods, while when price falls suppliers tend to supply less goods.

This is as a result of lower motivation to sell at a lower price where profit margins are low. The higher the price the more the profit made so they are more motivated.

Also when prices are too low the suppliers may barely cover their cost of production so they tend to supply less.

Attached is a diagram of the supply curve