The firm's short-run supply curve shows the relationship between the price of a good and the

Question

Quizplus · Accepted Answer

The short-run supply curve shows the relationship between the price of a good and the quantity supplied of that good. In the short run, a firm's capacity output is fixed, so it cannot be the determinant of the firm's supply curve. The willingness of consumers to purchase the good is related to the demand for the good, not the supply.

The Firm's Short-Run Supply Curve Shows the Relationship Between the Price