The supply curve shows the relationship between:
A) demand and supply.
B) quantity demanded and quantity supplied.
C) price and quantity supplied.
D) price and quantity demanded.

Question

Quizplus · Accepted Answer

The supply curve shows the relationship between price and quantity supplied. It illustrates how much of a good or service producers are willing and able to supply at different price levels, ceteris paribus (all other things being equal). As the price of a good or service increases, producers have an incentive to supply more of it because they can earn higher profits. Conversely, as the price decreases, producers may reduce their supply because it becomes less profitable to produce. Therefore, the supply curve is upward sloping, indicating a positive relationship between price and quantity supplied.

The Supply Curve Shows the Relationship Between