We see that as the market price rises, the desired quantity supplied rises too, just as with our linear supply curve. In this example we show that as price rises from 1 to 5, the desired quantity supplied rises from 2 to 6.

   We still haven't explained why the supply curve should be upward sloping. A complete answer will have to wait until we study production costs and perfect competition. However, we can understand the basics now, by recalling what we know about opportunity costs.

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