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From course:

Economics A Level (DONEEEEEEE)

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Question:

Why do Supply Curves slope Upwards?

Author: eric_galvao



Answer:

-Ceteris Paribus, Producers and Sellers want to Maximise their Profits, and so, the Higher the Price, the Higher the Profit -So Therefore Higher Profit gives an Incentive to expand Production and Increase Supply. That's why Quantity Supplied Increases as Price Increases [More than the Cost of Supplying More]


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