In the context of fundamental principles of a free market system, which of the following statements is true of a supply curve?
A)It shows the relationship between price and quantity from a supplier standpoint.
B)It refers to the point where the supply of products starts exceeding demand due to excessive production.
C)It shows the relationship between price and quantity from a buyer standpoint.
D)It refers to the point where the supply of products is no longer possible due to exhaustion of resources.

Question

Quizplus · Accepted Answer

A supply curve shows the relationship between price and quantity from a supplier standpoint, indicating the amount of a product that suppliers are willing to offer at different price levels. The curve slopes upward as the price rises because suppliers are more willing to produce and sell products at higher prices.

In the Context of Fundamental Principles of a Free Market