The Market Supply Curve

question 26

Multiple Choice

The market supply curve

• A)is found by vertically adding the individual supply curves.
• B)slopes downward.
• C)represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good.
• D)represents the sum of the quantities supplied by all the sellers at each price of the good.

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Definitions:

Marginal

Relating to the change or difference resulting from a slight incremental increase or decrease in a variable's level.

Economic Variable

A measurable quantity that represents a component of economic performance or behavior, such as GDP, unemployment rate, or inflation.

Rational Decision Makers

Individuals or organizations that make choices that maximize their utility, based on systematic analysis of options and outcomes.

Expected Marginal Benefit

The additional benefit perceived by a consumer or producer from consuming or producing one more unit of a good or service.