In microeconomic analysis, the diagrammatic representation of a supply function is termed as the:
Correct Answer :
Supply curve
Solution :
The correct answer is Supply curve.
In microeconomic analysis, various functions depicting market behaviors and economic relationships are represented graphically:
1. Supply Curve: The supply function expresses the mathematical relationship between the quantity of a commodity that producers are willing to offer for sale and its price, keeping other determinants constant. The diagrammatic or graphical representation of this supply function is called the Supply curve. It generally slopes upward from left to right, reflecting the Law of Supply (as price increases, quantity supplied increases).
2. Demand Curve: Represents the diagrammatic form of a demand function, depicting the inverse relationship between price and quantity demanded.
3. Cost Curve: Represents the graphical relationship between various costs of production (such as total, average, or marginal cost) and output level.
4. Revenue Curve: Illustrates the relationship between a firm's total, average, or marginal revenue and the volume of output sold.
Thus, the graphical representation of a supply function is known as the supply curve.
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