The supply curve typically slopes in which direction?

The supply curve typically slopes upwards because it represents the relationship between the quantity of a good that producers are willing to sell and the price of that good. As the price increases, producers are generally more willing to supply a larger quantity of the good to the market. This upward slope indicates that higher prices incentivize producers to increase their output, reflecting the costs associated with production, such as labor and materials.

In contrast, a downward-sloping curve would suggest that as the price increases, producers would supply less, which contradicts the fundamental principles of supply. A horizontal supply curve would imply that producers are willing to supply any amount at a specific price, which is not the case in most market situations. Similarly, a vertical supply curve would indicate that the quantity supplied does not change with price at all, which is only true in perfectly inelastic situations and is not representative of typical market behaviors. Therefore, the upward slope of the supply curve captures the positive correlation between price and quantity supplied, making it the correct answer.