Textbook ExpertVerified Tutor
27 Nov 2021
Introduction
The supply curve shows the positive relationship between price and quantity supplied, that at a higher price leads to higher quantity supplied and a lower price leads to a lower quantity supplied. It has an upward sloping curve because price and quantity supplied move in the same direction.
However, in the situation where supply of good or services cannot be increase with increase in price in the short run is known as inelastic supply.
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