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The supply curve illustrates the relationship between the quantity supplied of a good and its __________.

a) Market demand
b) Market supply
c) Price
d) Quantity demanded

User Alex Suo
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1 Answer

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Final answer:

The supply curve displays the relationship between the price of a good and the quantity supplied. As prices rise, the quantity supplied generally increases, a concept captured by the upward-sloping supply curve on a graph.

Step-by-step explanation:

The supply curve illustrates the relationship between the price and the quantity supplied of a certain good or service. When we represent this relationship on a graph, the quantity supplied is placed on the horizontal axis while the price is on the vertical axis, forming the supply curve. According to the law of supply, there is a direct relationship between price and quantity supplied: as the price increases, the quantity supplied typically also increases.

A supply schedule, on the other hand, is a table that lists the quantity of a good that producers are willing to supply at different prices. When the market experiences a surplus, it means that at the existing price, the quantity supplied exceeds the quantity demanded, which is also known as excess supply. This situation often leads to downward pressure on prices.

User Vish
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