In microeconomics, what is a market supply schedule?

• A. A table showing the quantity demanded by all buyers in a market at each of various prices, holding other factors constant
• B. A table showing the total quantity supplied by all sellers in a market at each of various prices, holding other factors constant
• C. The price at which quantity demanded equals quantity supplied in a market
• D. A graph showing the quantity supplied by a single firm at each of various prices, holding other factors constant

Answer: (B)

Verified step by step guidance

1. Understand that a market supply schedule is a tabular representation that shows how much quantity all sellers in a market are willing to supply at different price levels.
2. Recognize that the schedule aggregates the quantities supplied by individual sellers to reflect the total market supply at each price.
3. Note that the schedule holds other factors constant (ceteris paribus), meaning it isolates the relationship between price and quantity supplied without changes in other variables.
4. Distinguish the market supply schedule from a demand schedule, which shows quantities demanded by buyers, and from individual supply schedules or equilibrium prices.
5. Summarize that the market supply schedule helps analyze how total quantity supplied changes as the market price changes, which is fundamental for understanding supply behavior in microeconomics.