Which of the following statement (s) is/are correct?

Statement 1: The market supply curve shows the output levels (plotted on the x-axis) that a firm produce corresponding to different values of the market price (plotted on the y-axis).

Statement 2: The market supply at price p is the summation of the supplies of individual firms at that price.

Only Statement 2 is correct.

The correct answer is Option 2: Only Statement 2 is correct.

Statement 1: The market supply curve shows the output levels (plotted on the x-axis) that a firm produce corresponding to different values of the market price (plotted on the y-axis). This is incorrect. The statement incorrectly suggests that the x-axis represents output levels of a single firm rather than the market's total supply.

Statement 2: The market supply at price p is the summation of the supplies of individual firms at that price. This is correct. The market supply curve is obtained by horizontally summing the individual supply curves of all firms in the market.