In microeconomics, what does a supply curve represent (holding other factors constant)?

• A. The relationship between consumers' income and the quantity of a good that firms supply
• B. The relationship between the price of a good and the quantity that consumers are willing and able to buy over a given period of time
• C. The combination of prices and quantities at which a market is always in equilibrium regardless of demand shifts
• D. The relationship between the price of a good and the quantity that producers are willing and able to supply over a given period of time

Answer: (D)

Verified step by step guidance

1. Understand that the supply curve in microeconomics illustrates how much of a good producers are willing and able to sell at different prices, assuming all other factors remain constant (ceteris paribus).
2. Recognize that the supply curve plots the relationship between the price of the good (on the vertical axis) and the quantity supplied (on the horizontal axis).
3. Note that as the price of the good increases, producers are generally willing to supply more of the good, which is why the supply curve typically slopes upward.
4. Distinguish the supply curve from the demand curve, which shows the relationship between price and quantity demanded by consumers, not producers.
5. Remember that the supply curve does not represent consumer income effects or market equilibrium points by itself, but specifically the producers' willingness and ability to supply at various prices over a given time period.