Final answer:
The supply curve is a graphical illustration of the relationship between the price of a good and the quantity supplied, usually represented with an upward-sloping line on a graph. It demonstrates the law of supply, which indicates that higher prices lead to higher quantity supplied by producers.
Step-by-step explanation:
A graphical representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is known as the supply curve. The supply curve is a graphical illustration that depicts this relationship, with price typically on the vertical axis and quantity on the horizontal axis. The curve typically slopes upward, indicating that as the price increases, producers are willing to supply more of the good. This is because higher prices can cover the increased costs of production and can provide additional revenue, motivating producers to increase their output.
An example of how the supply curve is used can be seen in the market for gasoline. Prices for gasoline in dollars per gallon and quantities supplied in millions of gallons can be graphed to show the supply relationship. The supply schedule, a table showing quantity supplied at various prices, provides the same information in a different format. Together, these tools help illustrate the fundamental economic principle known as the law of supply.