Assertion:When the information described in the supply schedule is represented on a graph, it is called as Supply Curve.
Reasoning: A firm’s ‘supply’ is the quantity that it chooses to sell at a given price, given technology, and given the prices of factors of production.
Answer & explanation
Correct answer: option 2
The correct answer is Option 2: Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
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Assertion (A): True.
- A supply schedule is a table that shows the quantity of a good a firm is willing to supply at different prices.
- When this information is plotted on a graph, it forms the supply curve, which shows the relationship between price and quantity supplied.
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Reasoning (R): True, but it does not explain A.
- A firm’s supply refers to the quantity it chooses to sell at a given price, considering factors like technology and input prices.
- This statement correctly defines supply, but it does not explain why a graphical representation of a supply schedule is called a supply curve.