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Supply curve will be upward sloping in two reason,the first reason is know as the income effect and the second is know as substitution effect.
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The law of supply implies that the supply curve is?
Upward-sloping
What does the law of demand suggest that most demand curves will be?
The law of supply predicts the supply curve will be upward sloping.
What characteristics lead to an upward-sloping supply curve?
Increasing opportunity costs.Increasing marginal costs.
Why does the short run aggregate supply curve slope upward?
there are three reasons why the SRAS curve is upward sloping Sticky wages theory Sticky Price Theory misperception theory
Is The aggregate demand curve downward sloping for the same reason that the demand curve for a single good is downward sloping?
true because it is still supply and demand downward sloping
The law of supply implies that the supply curve is?
Upward-sloping
What does the law of demand suggest that most demand curves will be?
The law of supply predicts the supply curve will be upward sloping.
What characteristics lead to an upward-sloping supply curve?
Increasing opportunity costs.Increasing marginal costs.
Why does the short run aggregate supply curve slope upward?
there are three reasons why the SRAS curve is upward sloping Sticky wages theory Sticky Price Theory misperception theory
Is The aggregate demand curve downward sloping for the same reason that the demand curve for a single good is downward sloping?
true because it is still supply and demand downward sloping
How does a supply curve reflect the law of supply?
Companies will want to supply more goods/services at a higher price because they can make more profit this way. Therefore, the supply curve is upward sloping since at each increase in price, there will be a corresponding increase in quantity supplied. This exactly is the law of supply: businesses will supply more at higher prices.
What are typical shapes of marginal-benefit curves?
Marginal Benefit curve is usually downward sloping, while Marginal Cost is usually upward sloping.
What happen to price when supply is constant and demand increaes?
prices will fall if demand decreases and the supply is constant. the supply curve will be vertical and demand curve will be downward sloping.
Why does the LM curve slope upwards?
In equilibrium: Money supply = Money demand.Summarizing it, we can explain the upward sloping LM curve as following:If income is high then thedemand for money will be high relative to the fixed supply. In order to equilibrate money demand and money supply, interest rates have to also be high to reduce money demand
In which direction does the supply curve slope from the left to the right?
upward
In which direction does the supply curve slope from left to the right?
upward
Why is it in macroeconomics demands is downward sloping but supplies is vertical?
Supply is USUALLY upward sloping, the only case (I think) where supply is vertical is when you are talking about the money supply and interest rates. This is because the money supply is set by the Fed, and so does not vary.
