Which of the following statements about the supply curve is the most accurate?
A) It shows how the average cost of production varies with price.
B) It shows the same basic information as a demand curve.
C) It shows how the quantity demanded varies with price.
D) It shows how the quantity supplied varies with price.

Question

Quizplus · Accepted Answer

The supply curve shows how the quantity supplied varies with price. It illustrates the relationship between the quantity of a good that sellers are willing and able to sell at a given price, ceteris paribus. Option A is incorrect as it refers to the average cost curve, not the supply curve. Option B is incorrect as the demand curve shows the relationship between the quantity of a good that buyers are willing and able to purchase at a given price. Option C is incorrect as it describes the demand curve, not the supply curve.

Which of the Following Statements About the Supply Curve Is