Question

In microeconomics, the supply curve is drawn with:

Options

• Price on both axes to show equilibrium

• Quantity supplied on the vertical axis and price on the horizontal axis

• Price on the vertical axis and quantity supplied on the horizontal axis

• Income on the vertical axis and consumption on the horizontal axis

Answer 1

In microeconomics, the supply curve has price on the vertical axis and quantity supplied on the horizontal axis. In contrast, in the first stage of macroeconomic theory, the price level is fixed, and aggregate supply is represented by a 45° line with GDP on the horizontal axis.