What does a supply curve represent?

A supply curve represents a graphical representation of the relationship between the quantity of a product that producers are willing to sell and the price of that product. It is derived from a supply schedule, which is a table that outlines the various quantities of a good that suppliers are willing to sell at different price levels.

When you plot the data from a supply schedule on a graph, with price on the vertical axis and quantity supplied on the horizontal axis, you create the supply curve. This curve generally slopes upward, indicating that as the price increases, the quantity supplied also increases, reflecting the principle of the law of supply.

This understanding of the supply curve is crucial for analyzing how market conditions affect supply and for understanding how price changes impact the behavior of producers. The reference to elasticity in one of the options highlights a different economic concept that's related but distinct from the representation of supply itself. Thus, the correct choice encapsulates the essential function of the supply curve in illustrating supplier behavior in relation to price changes.