It follows that all three firms together will offer

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ed of fans is 100, firm B’s is 150, and firm C’s is 200. It follows that all three firms together will offer 450 fans at a price of $50 per fan. This point is identified on the market supply curve in part (d). Suppose that only three suppliers of fans exist in the whole world: firm A, firm B, and firm C. At a price of $50 a fan, quantity supplied is 100 for firm A, 150 for firm B, and 200 for firm C. As a result, the market supply curve would have a point representing a price of $50 per fan and a market quantity supplied of 450 fans (100 150 200). EXAMPLE: Defining Terms 1. Define: a. supply b. law of supply c. direct relationship d. quantity supplied e. supply curve f. supply schedule 2. Use the term quantity supplied correctly in a sentence. Use the word supply correctly in a sentence. Reviewing Facts and Concepts 3. a. State the law of supply. b. Explain the direct relationship between the price of a good 116 Chapter 5 Supply To see this concept graphically, look at Exhibit 5-3 above. In parts (a) through (c) you see...
View Full Document

This document was uploaded on 01/16/2014.

Ask a homework question - tutors are online