Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsSupply2 Marks
Question
The supply curve is positively sloped. Explain with reasons.
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Answer
As per the law of supply, as price increases, supply expands and as price decreases, supply contracts. This means there is a direct relationship between price and supply.
When we plot the points of any direct relationship between two variables, we get an upward positively sloped curve.
Hence, the supply curve is also positively sloped.
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