{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Notice that as price increases quantity supplied

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: seats seats for tonight’s performance (a) A supply schedule for a good. Notice that as price increases, quantity supplied increases. (b) Plotting the four combinations of price and quantity supplied from part (a), and connecting the points, yields a supply curve. When additional units cannot be produced or there is no time to produce more, the supply curve is vertical. Section 1 Understanding Supply 115 05 (110-127) EMC Chap 05 EXH I BIT 5-3 11/17/05 4:51 PM From Firms’ Supply Curves to Market Supply Curve Price of fans SFirm A SFirm B Firm A’s supply curve $50 0 Page 116 100 + Firm B’s supply curve $50 0 150 SFirm C + $50 Firm C’s supply curve 0 200 = $50 Market supply curve SAll suppliers 0 450 Quantity supplied of fans (a) ( b) (c ) (d) In parts (a) through (c) we show the supply curve for firms A, B, and C, respectively. The market supply curve, shown in part (d), is simply the sum of the firms’ supply curves. Stated differently, we know that at a price of $50 per fan, firm A’s quantity suppli...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online