Question

pls answer all 4

A supply curve slopes upwards because a. the higher the price the higher the quantity that the sellers are willing to supply b. the higher the price the lower the quantity that the sellers are willing to supply c. an increase in price brings the quantity sold down to zero Od the quantity supplied in insensitive to price QUESTION 6 A firm experiencing constant economies of scale will have a long-run average cost curve that is: a downward sloping b. horizontal c. vertical od upward sloping

Answer 1

The supply curve is upward sloping because opportunity cost of production increases. This is because cost of production increases with the increase in the production. So a producer will produce and sell more units only at a greater price.

It means that a supply curve slopes upward because the higher the price the higher the quantity that the sellers are willing to supply.

Hence option a is the correct answer.

6.

When long-run average total cost is same with the increase in the output level, then shows constant return to scale. It means that LRAC curve will be horizontal.

Hence option b is the correct answer.

8.

Since the law of demand stats that there is an inverse relationship between price and quantity demanded and other factors which affect the demand remains same.

It means a demand curve describes the amount of units a consumer will purchase at any given price.

Hence option c is the correct answer.

9.

Since in a study it has been found that Peanuts are one of the leading cause of high cholesterol, so many people stop consuming peanuts, so demand curve of the peanuts will shift to the left.

Hence option b is the correct answer.