Which of the following best describes a normal supply curve?

• A. It slopes upward, indicating that as price increases, quantity supplied increases.
• B. It is perfectly horizontal, indicating that price does not change with quantity supplied.
• C. It slopes downward, indicating that as price increases, quantity supplied decreases.
• D. It is perfectly vertical, indicating that quantity supplied does not change with price.

Answer: (A)

Verified step by step guidance

1. Understand that a supply curve shows the relationship between the price of a good and the quantity that producers are willing to supply.
2. Recall the Law of Supply, which states that, all else equal, an increase in price leads to an increase in quantity supplied.
3. Recognize that this positive relationship means the supply curve typically slopes upward from left to right.
4. Compare this with other possible shapes: a horizontal supply curve implies price is constant regardless of quantity, a downward slope contradicts the Law of Supply, and a vertical supply curve means quantity supplied is fixed regardless of price.
5. Conclude that the normal supply curve is the one that slopes upward, indicating that as price increases, quantity supplied increases.