Market Supply Curve Basics

Steps:

• Recall that a market supply curve shows total quantity supplied at various prices for a specific good.
• Evaluate option A: Demand curves slope downward, not supply.
• Evaluate option B: Aggregate supply is economy-wide, not for one product.
• Evaluate option C: It aggregates individual firm supplies horizontally at each price.
• Evaluate option D: This describes total output, not supply for one product.

Why C is correct:

• By definition, the market supply curve is the horizontal summation of all individual firms' supply curves for that product, reflecting total supply at each price level.

Why the others are wrong:

• A: Supply curves slope upward due to the law of supply, increasing quantity with price.
• B: Aggregate supply curve covers all goods and services in the economy, not a single market.
• D: This refers to overall economic production, not the supply curve for a specific product.

Final answer: C