As per the NCERT glossary, the market supply curve shows:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → the output levels that firms in the market produce in aggregate corresponding to different values of the market price
The market supply curve adds up the output of all firms in the market at each market price.
Option (1) the total revenue that all firms in the market earn at different levels of output — Incorrect. Supply curves show output at each price, not revenue.
Option (2) the output levels that firms in the market produce in aggregate corresponding to different values of the market price — Correct. This is the Glossary meaning of the market supply curve.
Option (3) the quantities of a good that all buyers in the market wish to buy at different values of the market price — Incorrect. What buyers wish to buy is demand, not supply.
Option (4) the output levels that a single profit-maximising firm chooses to produce at different values of the market price — Incorrect. This is the firm’s supply curve, for one firm only.
NCERT (2026-27): Glossary: “Market supply curve – shows the output levels that firms in the market produce in aggregate corresponding to different values of the market price.” Glossary: “Firm’s supply curve – shows the levels of output that a profit-maximising firm will choose to produce at different values of the market price.” |