Which of the following does a market supply curve show?

• A. The relationship between the price of a good and the total quantity demanded by consumers
• B. The relationship between the price of a good and the total quantity supplied by all producers in the market
• C. The relationship between consumer income and the quantity demanded of a good
• D. The relationship between production costs and the quantity supplied by a single firm

Answer: (B)

Verified step by step guidance

1. Understand that a market supply curve represents the behavior of all producers in a market combined, not just a single firm or consumers.
2. Recall that the supply curve shows how much quantity producers are willing to supply at different prices, holding other factors constant.
3. Recognize that the market supply curve aggregates the quantities supplied by all individual producers at each price level.
4. Note that the market supply curve plots the price of the good on the vertical axis and the total quantity supplied on the horizontal axis.
5. Conclude that the market supply curve shows the relationship between the price of a good and the total quantity supplied by all producers in the market.