Answer to Question #96871 in Macroeconomics for Tiffany

Question

Explain an important assumption behind the upward slope of the AS curve

Answer 1

The fact that the supply curve slopes upward means that there is a direct relationship between the price at which the producer can sell their product and the quantity of the product that they can and will sell. This makes sense because a higher price will bring (all other things being equal) a higher profit.