Which curve shows how much sellers are willing to supply at different prices?

Which curve shows how much sellers are willing to supply at different prices?

• A. Budget line
• B. Demand curve
• C. Supply curve
• D. Subsidy

Answer: (C)

The main idea here is the relation between price and how much sellers are willing to produce and offer for sale. The curve that captures this is the supply curve, which plots price against quantity supplied. It’s typically upward-sloping: when prices rise, producers gain more incentive to produce, so the quantity they’re willing to supply increases; when prices fall, they supply less. The other options describe different ideas. A budget line shows what a consumer can afford to buy given income and prices for two goods, not how much sellers supply. The demand curve shows how much buyers are willing to purchase at different prices, not how much sellers supply. A subsidy is a government payment that can shift supply but is not itself a curve.

The main idea here is the relation between price and how much sellers are willing to produce and offer for sale. The curve that captures this is the supply curve, which plots price against quantity supplied. It’s typically upward-sloping: when prices rise, producers gain more incentive to produce, so the quantity they’re willing to supply increases; when prices fall, they supply less.

The other options describe different ideas. A budget line shows what a consumer can afford to buy given income and prices for two goods, not how much sellers supply. The demand curve shows how much buyers are willing to purchase at different prices, not how much sellers supply. A subsidy is a government payment that can shift supply but is not itself a curve.