Which of the following is true about the supply curve between the given points?

• A. The supply curve indicates the inverse relationship between price and quantity supplied.
• B. The supply curve is always perfectly vertical between any two points.
• C. The supply curve remains unchanged regardless of changes in input prices.
• D. The supply curve shows the direct relationship between price and quantity supplied.

Answer: (D)

Verified step by step guidance

1. Recall the definition of the supply curve: it shows the relationship between the price of a good and the quantity that producers are willing to supply.
2. Understand that the supply curve typically has a positive slope, meaning as price increases, quantity supplied increases, indicating a direct relationship.
3. Evaluate the given statements by comparing them to the fundamental properties of the supply curve: it is not inverse (which would mean price and quantity move in opposite directions), it is not always perfectly vertical (vertical would mean quantity supplied does not change with price), and it can shift if input prices change.
4. Recognize that changes in input prices cause the supply curve to shift, so the statement that it remains unchanged regardless of input prices is false.
5. Conclude that the correct statement is that the supply curve shows a direct relationship between price and quantity supplied, reflecting the law of supply.