SUPPLY

Question 1

supply and price

Answer 1

Quantity supplied increases at higher prices because producers see that they can make profit selling their goods at higher prices, so they have more incentive to supply when the price is higher, increasing quantity supplied.

whereas as price decreases quantity suplliied will decrease as theres less prfofit to be made so they have less incentive to supply when the price is lower, decreases quantity supplied.

Question 2

supply curve

Answer 2

upward sloping curve as price increases quantity supplied increases (extension) and when price decreases (contraction) doesnt stste why price has increased and assumes producers want to maximise profit