What is market supply? How is the market supply curve for a good obtained?
A market is made up of many individual producers who all differ in their willingness and ability to sell various goods. The market supply of a good is the sum of the supplies from all the individual sellers of the good in a given market. To obtain the market supply curve of a good, economists use a process known as horizontal summation. All the individual supply curves of the good are added horizontally to obtain the market supply curve.
You might also like to view...
An ideal pollution control policy: a. would reduce pollution to zero
b. would reduce pollution to the socially efficient level. c. discourage firms from wasting time developing abatement technologies. d. reduce pollution as quickly as possible, regardless of the cost.
Ben's nominal annual income in 2009 was $40,000. If the rate of inflation is constant at 10 percent, in order to keep Ben's real income constant, his nominal income in the year 2010 should be:
A. $50,000. B. $44,000. C. $40,000. D. $36,000.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
Which of the following best expresses the formula for determining the price of a U.S. Treasury bill that matures n periods from now per $100 of face value when the interest rate is i?
A. $100/(1 + i)n B. 1 + $100/(1 + i)n C. $100/(1 + i) D. $100(1 + i)