Question

a supply curve:
a. illustrates the direct relationship between price and quantity supplied.
b. has a negative slope.
c. illustrates the inverse relationship between price and quantity supplied.
d. is based on the assumption of a stable demand curve.

Explanation:

A supply curve is grounded in the law of supply, which states that as the price of a good rises, the quantity supplied by producers increases (and vice versa), creating a direct positive relationship. This results in a positive (upward-sloping) curve, eliminating options b and c. Supply curves are constructed assuming other factors (like input costs, technology) are constant, not a stable demand curve, so option d is incorrect.

Answer:

a. illustrates the direct relationship between price and quantity supplied.