-In Diagram 27a, the supply curve represented by line S shows
A) that there is a positive relationship between price and quantity supplied.
B) that there is an inverse relationship between price and quantity supplied.
C) that the relationship between price and quantity supplied it both positive and inverse.
D) that the relationship between price and quantity supplied is circular.

Question

-In Diagram 27a, the supply curve represented by line S shows
A) that there is a positive relationship between price and quantity supplied. 
B) that there is an inverse relationship between price and quantity supplied. 
C) that the relationship between price and quantity supplied it both positive and inverse. 
D) that the relationship between price and quantity supplied is circular.

Quizplus · Accepted Answer

The supply curve typically illustrates a positive relationship between price and quantity supplied, meaning as the price increases, the quantity supplied also increases. This is a fundamental principle in economics, reflecting producers' willingness to supply more of a good as its price rises.

-In Diagram 27a, the Supply Curve Represented by Line S