Correcting a Supply Schedule
An analyst is studying a local market for hand-knit scarves and has collected the minimum selling price for each of the four potential suppliers: Supplier A ($15), Supplier B ($25), Supplier C ($20), and Supplier D ($30). The analyst constructs the following supply schedule based on this information:
| Market Price | Quantity Supplied |
|---|---|
| $16 | 1 |
| $22 | 1 |
| $26 | 1 |
| $31 | 1 |
Identify the fundamental error in the 'Quantity Supplied' column of the analyst's schedule. Explain the correct principle for determining the total quantity supplied at a given market price based on individual sellers' minimum acceptable prices, and provide the corrected quantity supplied for the market prices of $22 and $26.
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CORE Econ
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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Graphical Representation of a Supply Curve for Second-Hand Books
You are observing a market for used video games. Four sellers are present, each with a different minimum price they are willing to accept for their game. Arrange these sellers in the order they would appear on the market supply curve, from the one willing to sell at the lowest price to the one requiring the highest price.
Consider a market for handcrafted wooden bowls with five potential sellers. Each seller has a different minimum price they are willing to accept for their product, as shown below:
- Seller A: $25
- Seller B: $32
- Seller C: $28
- Seller D: $22
- Seller E: $30
If the current market price for a wooden bowl is $29, how many sellers would be willing to supply their product to the market?
A market supply curve is constructed by arranging all potential sellers in order of their 'willingness to accept' (the minimum price they will sell for), from lowest to highest. Why does this specific construction method result in an upward-sloping supply curve?
Imagine a market for custom-printed t-shirts where the supply curve is determined by arranging individual sellers based on their minimum acceptable price for a shirt. If the cost of plain t-shirts, a key input, uniformly increases by $2 for all sellers, how does this change affect the market supply curve?
Correcting a Supply Schedule
Analyzing Market Supply with a New Entrant
Consider a market with four potential sellers, each offering one unit of a good. Their minimum acceptable selling prices (their reservation prices) are $18, $22, $25, and $30. Match each potential market price below with the correct total quantity of the good that would be supplied by these sellers.
Five individuals are selling identical, used textbooks. Their minimum acceptable selling prices are: Seller A ($10), Seller B ($12), Seller C ($20), Seller D ($21), and Seller E ($22). Based on this set of individual seller prices, which statement accurately analyzes the resulting market supply?
True or False: In a market where the supply schedule is constructed by arranging individual sellers from the lowest to the highest minimum acceptable selling price, an increase in the market price could lead to a decrease in the total quantity of goods offered for sale.
Evaluating a Market Based on Seller Prices