_____________ refers to the total supply of a commodity by all the firms in the industry at a given price?
Answer & explanation
Correct answer: option 3
The correct answer is option 3: Market supply
Market supply refers to the total quantity of a commodity supplied by all firms in an industry at a given price. It is the sum of individual firm supplies at each price level.
Let's analyze the other options:
- Market price – Incorrect, as this refers to the price at which goods are sold in the market, not the total supply.
- Market equilibrium – Incorrect, as this refers to the point where market demand equals market supply, determining the equilibrium price and quantity.
- Market demand – Incorrect, as this refers to the total quantity of a commodity that consumers are willing to buy at a given price, not the supply.