In a competitive market, the market supply curve indicates the relationship between which two variables, holding other factors constant?

• A. Consumer income and the quantity supplied of a good
• B. The quantity supplied of a good and its price
• C. The quantity demanded of a good and its price
• D. The number of buyers in the market and the equilibrium price

Answer: (B)

Verified step by step guidance

1. Understand that the market supply curve shows how much of a good producers are willing and able to sell at different prices, holding other factors constant.
2. Identify the two key variables involved in the supply curve: the price of the good and the quantity supplied of that good.
3. Recall that the supply curve typically slopes upward, indicating that as the price increases, producers are willing to supply more of the good.
4. Recognize that other factors like consumer income or the number of buyers affect demand, not supply, so they are not variables on the supply curve.
5. Conclude that the market supply curve represents the relationship between the price of the good and the quantity supplied, holding other factors constant.