Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Quantity supplied
B
Profit margin
C
Consumer preference
D
Market demand
Understanding the Answer
Let's break down why this is correct
Answer
Demand is a function of price, meaning that for each price level we can see how much people want to buy. Supply is a function of quantity, meaning that for each quantity level we can see how much producers are willing to sell. So the relationship is: Demand is to price as supply is to quantity. For example, if the price of coffee rises, people buy less (demand drops), while if the quantity of coffee produced increases, producers are willing to sell more at each price (supply rises). This shows how each curve links a different variable to the market.
Detailed Explanation
Supply is the amount that sellers are willing to give at a certain price. Other options are incorrect because Profit margin is the extra money sellers make; Consumer preference is what people like or dislike.
Key Concepts
Law of Demand
Law of Supply
Market Equilibrium
Topic
Demand and Supply Basics
Difficulty
easy level question
Cognitive Level
understand
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