What does an individual supply curve illustrate?

An individual supply curve illustrates the quantity of a good that a firm is willing and able to supply at various price points, demonstrating how supply varies with price. It is typically upward sloping, reflecting that as the price of a good increases, the quantity supplied typically increases as well, due to the profit motive where firms are incentivized to produce more when they can receive a higher price.

This relationship highlights the basic principles of supply in microeconomics, showcasing the direct correlation between price and quantity supplied. Each point on the curve represents a specific quantity that the firm will supply at a certain price, allowing economists to make predictions regarding market behaviors under different price scenarios. Essentially, option B aligns perfectly with the fundamental definition and function of an individual supply curve in economic analysis.