Microeconomics

Running head: MICROECONOMICS
Microeconomics
Name of the Student
Name of the University
Author Note

MICROECONOMICS
1
Table of Contents
Answer 1: Logics behind upward slope of the supply curves and shifts in supply curve. .2
Answer 2: Determination of market equilibrium.......................................................................3
Answer 3: The concept of price elasticity of demand..............................................................4
References.....................................................................................................................................5

MICROECONOMICS
2
Answer 1: Logics behind upward slope of the supply curves and shifts in supply
curve
Figure 1: Upward slopping supply curve
Source: (Created by the author)
The supply curve acts as a graphical representation, reflecting the nature of
associate between price and quantity of a product that a producer is able to supply. In
economics, price and supply are positively associated. The quantity of supply increases
in relation to the increase in the price (Gavazza 2016). Therefore, this results in the
upward sloping supply curve. In figure1, the quantity of supply is measured along with
the horizontal axis and the corresponding product price is labeled along the vertical
axis. The upward movement in the supply curve ensures that increase in price will
intensify the quantity of supply.