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When some goods or productive factors are completely fixed in amount, regardless of price, the supply curve is
horizontal
downward sloping to the right
vertical
upward sloping to the right
Although demand curves are typically downward sloping to reflect that consumers’ utility for a good diminishes with increased consumption, firm supply curves are generally upward sloping. The upward sloping character reflects that firms will be willing to increase production in response to a higher market price because the higher price may make additional production profitable.
By: Ketan Garg ProfileResourcesReport error
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