Question

Answer with reasons whether you agree or disagree with the following statement:

The supply curve slopes downward from left to right. 

Answer 1

I disagree with the given statement.

Reason:

1. The supply curve is a graphical representation of the supply schedule. The supply curve indicates a direct (positive) relationship between price and quantity supplied. It means when the price rises, supply also rises, and when the price falls, supply also decreases.
2. The positive or direct relationship between price and quantity supplied is shown in the following schedule and diagram:
   This is shown in the following diagram:
   

   supply schedule
   Price	Quantity of supply
   10	10
   15	20
   20	25

   
   
3. The X-axis represents the quantity supplied, and the Y-axis represents the price of the commodity. Supply curve ‘SS’ slopes upwards from left to right, which has a positive slope. It indicates a direct relationship between price and quantity supplied.
4. When price rises supply also rises and when the price falls supply decreases. It means a higher quantity of the commodity is supplied at a higher price, and a lower quantity of the commodity is supplied at a lower price.