Association of Chartered Certified Accountants (ACCA) Certification Practice Test 2026 - Free ACCA Practice Questions and Study Guide

The supply curve typically travels from left to right, pointing upwards, which indicates that as the price of a good or service increases, the quantity supplied also increases. This relationship reflects the fundamental principle of supply in economics, known as the law of supply. When suppliers receive higher prices, they are more inclined to produce and offer greater quantities of the good or service to the market, motivated by potential profit.

As for the other options, a downward slope from left to right would suggest a decrease in supply with an increase in price, which contradicts the law of supply. A vertical line along the y-axis would indicate that supply is completely inelastic, meaning that supply does not change regardless of price, which is not characteristic of most goods and services in a competitive market.