The supply curve illustrates:
A) the relationship between the cost of production and price.
B) the relationship between the quantity supplied and the price of a good.
C) the total cost of producing a good.
D) the willingness to produce a good if the technology to produce it becomes available.

Question

Quizplus · Accepted Answer

The supply curve illustrates the relationship between the quantity supplied and the price of a good. As the price of a good increases, the quantity supplied by producers tends to increase as well, resulting in an upward sloping supply curve. This is because higher prices provide an incentive for producers to allocate more resources to the production of that good, or to enter the market and increase production.

The Supply Curve Illustrates