Question

Write a long note on the assumptions under which an upward sloping supply response and a vertical AS curve is observed.

Answer 1

Answer:

In most cases, the supply curve is drawn as a slope rising upward from left to right, since product price and quantity supplied are directly related (i.e., as the price of a commodity increases in the market, the amount supplied increases). ... A change in any of these conditions will cause a shift in the supply curve.