The main difference between an individual supply curve and the aggregate supply curve is that
A)an individual supply curve reflects the change in price of an individual commodity,while an aggregate supply curve shows the effects of changes in the price level for the entire economy.
B)a relative price change occurs along an individual supply curve while prices do not change along an aggregate supply curve.
C)input prices are held constant along an aggregate supply curve but not along an individual supply curve.
D)individual supply curves are upward sloping while aggregate supply curves are not.

Question

Quizplus · Accepted Answer

An individual supply curve represents the quantity of a specific good or service that a single producer is willing and able to offer at different prices, while the aggregate supply curve shows the total quantity of all goods and services that producers are willing and able to supply at different price levels. The aggregate supply curve takes into account the effects of changes in input prices and technology on production costs, which influence the level of output and prices for all goods and services in the economy.

The Main Difference Between an Individual Supply Curve and the Aggregate