How much a firm changes its output in response to a price change is captured by the firm's
A)production function.
B)cost function.
C)function of diminishing returns.
D)supply curve.
E)demand curve.

Question

Quizplus · Accepted Answer

The firm's responsiveness to a price change is best captured by its supply curve, which shows how much quantity of a good or service the firm is willing and able to produce at each possible price level.

How Much a Firm Changes Its Output in Response to a Price