Chp2

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Unformatted text preview: lied. 2.3.1 Market supply versus Individual Supply 2.3.1 Market Supply is the Sum of Individual Supplies. The quantity supplied in a market is the sum of the quantities supplied The by all the sellers at each price. Thus, the market supply curve is found by adding horizontally the individual supply curves. At a price of $2, Ben supplies 3 ice-cream cones, and Jerry supplies 4 ice-cream cones. The quantity supplied in the market at this price is 7 cones. quantity Price of Ice­Cream Cone $0.00 Ben 0.50 0 0 0 1.00 1 0 1 1.50 2 2 4 2.00 3 4 7 2.50 4 6 10 0 Jerry + 0 Market = 0 Ben’s Supply FIGURE 6 3. 5 3 Market Supply 2. 5 2 1. 5 3. 5 1 3 0. 5 0 0 1 2 3 4 5 Jerry’s Supply 2. 5 2 1. 5 3. 5 3 1 2. 5 0. 5 2 1. 5 0 1 1 0. 5 0 0 2 4 6 8 4 7 10 13 2.3.2 Shifts in the Supply Curve 2.3.2 S3 Price of Price Ice-Cream Cone Cone S1 Decrease Decrease in Supply in Any change that Any raises the quantity that sellers wish to wish produce at a given S2 price shifts the supply curve to the right. Increase in Increase Supply Supply 0 FIGURE 7 Quantity of Ice­ cream Cones Any change th...
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This note was uploaded on 12/06/2011 for the course BUSINESS Finance taught by Professor Qiuxin during the Summer '11 term at Nanjing University.

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