In microeconomics, what is a market supply schedule?

• A. A graph showing the relationship between a consumer’s income and the quantity demanded of a good
• B. A list of the maximum prices consumers are willing to pay for each unit of a good
• C. A table showing the quantity demanded by a single consumer at various prices, holding other factors constant
• D. A table showing the total quantity supplied by all sellers in a market at various prices, holding other factors constant

Answer: (D)

Verified step by step guidance

1. Understand that a market supply schedule is a way to represent how much of a good all sellers in a market are willing to supply at different prices.
2. Recognize that it is typically presented in the form of a table, where one column lists various prices and the corresponding column lists the total quantity supplied at each price.
3. Note that the market supply schedule aggregates the quantities supplied by all individual sellers, not just one seller.
4. Remember that the schedule assumes other factors remain constant (ceteris paribus), so only price changes affect the quantity supplied.
5. Distinguish the market supply schedule from demand schedules or individual supply schedules by focusing on total quantity supplied by the entire market at different prices.