1)The line on a supply curve moves: a) upward and to the left b) upward and to the right c) downward and to the left d) downward and to the center 2)Which of the following is not true about the short-run market supply curve? a) It is upward sloping

1)

• The correct option is b. Upward and to the right.

The supply curve of a product/service can be depicted from an upward sloping line that moves from the left side of the graph to the right side.

2)

b) It is a smooth curve when there are only a few firms in the market.

A few firm conditions exist in the market when there is an oligopoly form in the market. The demand curve of the oligopoly market turns to be kinked due to the presence of a few firms. When there are few firms, the demand changes the supply of oligopolistic firms changes. They do not consider the supply curve as the separate curve, as they produce based on price and output combination which is best for them. Also, the demand and supply of one firm depend on the supply of a rival firm. Hence, there can be some times when the price is stable, while sometimes the price is not stable as well, leaving a kink in the demand curve. This also makes it clear due to unstable supplies, the smooth supply curve does not exist.