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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
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
3. a. State the law of supply.
b. Explain the direct
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)
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This document was uploaded on 01/16/2014.
- Winter '14