How is a supply curve typically plotted in microeconomics?

• A. By graphing the relationship between quantity demanded and price, with quantity on the vertical axis and price on the horizontal axis.
• B. By plotting total cost against quantity supplied, with total cost on the vertical axis and quantity on the horizontal axis.
• C. By plotting profit against price, with profit on the vertical axis and price on the horizontal axis.
• D. By graphing the relationship between price and quantity supplied, with price on the vertical axis and quantity on the horizontal axis.

Answer: (D)

Verified step by step guidance

1. Understand that a supply curve in microeconomics shows how much quantity of a good producers are willing to supply at different prices.
2. Recognize that the typical convention is to place the price on the vertical axis and the quantity supplied on the horizontal axis.
3. Note that the supply curve is derived from the relationship between price and quantity supplied, not quantity demanded or profit.
4. Remember that as price increases, the quantity supplied usually increases, resulting in an upward-sloping supply curve.
5. Therefore, to plot the supply curve, graph the price (vertical axis) against the quantity supplied (horizontal axis) to visualize this positive relationship.