Question

What are the supply schedule and the supply curve, and how are they related? Why does the supply curve slope upward ?

Answer 1

A supply schedule is a table that shows the quantity supplied at each price. A supply curve is a graph that shows the quantity supplied at each price.

A supply curve slopes upward primarily because of the profit motive. When the market price of a particular good rises following an increase in demand, it becomes more profitable for firms to respond by increasing their output.