To keep things simple we identify only one point on

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Unformatted text preview: the supply curves for firms A, B, and C, respectively. (To keep things simple, we identify only one point on the supply curve for each firm.) Now look at part (d). Here you can see the market supply curve, which is the combination of all the individual market supply curves. and the quantity supplied. 4. Do all supply curves graphically represent the law of supply? Explain your answer. 5. Identify a good that has an upward-sloping supply curve. Identify a good that has a vertical supply curve. Critical Thinking 6. Three months ago the price of a good was $4, and the quantity supplied was 200 units. Today the price is $6, and the quantity supplied is 400 units. Did the quan- tity supplied rise because the price increased, or did the price rise because the quantity supplied increased? Applying Economic Concepts 7. Suppose three McDonald’s restaurants operate in your town, and each pays its employees $6 per hour. If McDonald’s started paying $9 per hour to its employees, would more, fewer, or the same number of people wa...
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This document was uploaded on 01/16/2014.

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