Multiple Choice
In a competitive market, why is the individual firm’s supply curve (and thus the market supply curve) typically upward sloping?
3. The Market Forces of Supply and Demand
The Supply Curve
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In microeconomics, what does a supply schedule show?
A
The single market-clearing price at which quantity demanded equals quantity supplied
B
The maximum price consumers are willing to pay for successive units of a good (marginal benefit)
C
The quantity of a good that producers are willing and able to sell at each of various prices during a given period
D
The quantity of a good that consumers are willing and able to buy at each of various prices during a given period
Verified step by step guidance1
Understand that a supply schedule is a table that shows the relationship between the price of a good and the quantity that producers are willing and able to sell.
Recognize that the supply schedule lists various prices in one column and the corresponding quantities supplied in another column.
Note that the supply schedule reflects producers' behavior over a given period, showing how quantity supplied changes as price changes.
Distinguish the supply schedule from a demand schedule, which shows quantities consumers are willing to buy at different prices.
Conclude that the supply schedule does not show a single market-clearing price or consumers' willingness to pay, but rather the quantities supplied at multiple prices.
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