Why does the short-run aggregate supply curve slope upward? A. Profits rise when

Question

Why does the short-run aggregate supply curve slope upward? A. Profits rise when the prices of the goods and services firms sell rise more rapidly than the prices they pay for inputs. B. an increase in market price results in an increase in quantities supplied, as stated by the law of supply. C. As the number of workers, machinery, and equipment increase, and technological changes occurs, quantity supplied increase. D. all of the above caused the short- run aggregate supply cure to slope upward.

Explanation / Answer

A. profits rise when the prices of the goods and services firms sell rise more rapidly than the
prices they pay for inputs

as there is incentive because of lower input costs compared to the higher selling prices , it will result in higher profit per unit that will lead to more production and supply

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