Constructing a Supply Curve from Willingness to Accept (WTA)

Linearity of Supply and Demand Curves as a Simplification

Market Supply as the Sum of Individual Firm Supplies

Three firms produce a specific type of widget. Firm X will offer 40 widgets for sale at any price of $8 or higher. Firm Y will offer 60 widgets for sale at any price of$11 or higher. Firm Z will offer 50 widgets for sale at any price of $14 or higher. If the market price for a widget is currently$12, what is the total quantity of widgets supplied to the market?

Market Supply for Handcrafted Mugs

For a market of a specific good, match each economic event with its direct effect on that good's market supply curve.

An improvement in the technology used to produce a specific good, which lowers the cost of production for all potential sellers, will cause a movement up and to the right along that good's existing market supply curve.

Interpreting a Market Supply Schedule

Explaining the Upward Slope of the Supply Curve

Consider a market with three individuals, each selling one identical used laptop. Seller 1 is willing to sell their laptop for $250 or more. Seller 2 is willing to sell theirs for$300 or more. Seller 3 is willing to sell theirs for $350 or more. Based on this information, arrange the following statements to correctly describe the total number of laptops supplied to the market as the price increases.

The total quantity of a good offered for sale by all producers in a market is represented by the market supply curve, which is derived by horizontally summing the individual ___________ of each producer.

Producer's Supply Decision

A market for a specific type of bicycle consists of only two producers: 'Cycle Corp' and 'Bike Inc.'. The table below shows the quantity of bicycles each firm is willing and able to sell at various prices.

Which of the following tables correctly represents the market supply schedule for this type of bicycle?

Market Supply as the Sum of Individual Firm Supplies

Mathematical Determination of Equilibrium Price and Quantity Using Direct Functions

General Model of Linear Demand and Supply Functions

Market Supply as the Sum of Individual Firm Supplies

Calculating Market Supply with Identical Firms

In the short-run analysis of a competitive market, an economist assumes a fixed number of producers and that all of them share an identical cost function. What is the most significant simplification that results from these assumptions?

When conducting a short-run analysis of a market where all firms are assumed to be identical, it is also assumed that new firms can freely enter the market if it is profitable.

Modeling Market Supply

In the short-run analysis of a market with identical firms, certain assumptions are made to simplify the model. Match each key assumption or result to its correct description.

Evaluating the 'Identical Firms' Assumption in Short-Run Market Analysis

When analyzing a market in the short-run with the simplifying assumption that all firms are identical, the total market supply at any given price can be calculated by taking a single firm's quantity supplied and multiplying it by the ________ ________ ________.

An economist is conducting a short-run analysis of a competitive market with a large number of producers who all use a very similar production process. If the economist simplifies the model by assuming the number of firms is fixed and that each firm has an identical cost function, what is the primary analytical advantage of this approach?

A short-run market analysis model assumes a fixed number of firms, each with an identical cost function. If, in a real-world application of this model, it is observed that firms respond differently to a price increase—some increasing output significantly and others only slightly—what is the most likely reason for this discrepancy, given the model's framework?

Market Impact of a Uniform Cost Shock