The market supply curve

Question

Quizplus · Accepted Answer

The market supply curve represents the sum of the quantities supplied by all the sellers at each price of the good. This is because it shows the total amount of the good that all sellers are willing and able to supply at different prices. The other options are incorrect because individual supply curves cannot be added vertically to obtain the market supply curve, the market supply curve slopes upward (since there is a positive relationship between price and quantity supplied), and it does not represent the sum of prices that all the sellers are willing to accept.

The Market Supply Curve