The supply curve represents the relationship between the quantities of a good that sellers are willing and able to supply and different prices of that good.

Question

Quizplus · Accepted Answer

This statement is true. The supply curve shows the quantity of a good that firms are willing to supply at each price level, holding all other factors constant. As the price of a good increases, firms have an incentive to produce more of it, resulting in an upward-sloping supply curve.

The Supply Curve Represents the Relationship Between the Quantities of a Good