Learn Before
  • Willingness to Accept (WTA)

Supply Curve

A supply curve, also known as a supply function, illustrates the number of units of a product that would be supplied to the market at any given price. A distinction is made between an individual firm's supply curve, which shows the output from a single producer, and the market supply curve (or industry supply curve), which represents the total number of units supplied by all sellers in the market.

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Introduction to Microeconomics Course

The Economy 2.0 Microeconomics @ CORE Econ

Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ

Related
  • Reserve Price

  • Factors Influencing Willingness to Accept (WTA)

  • Market for Second-Hand University Textbooks

  • Supply Curve

  • Methods for Selling a Privately-Owned Car

  • An individual is selling a vintage concert poster they own. They have a strong sentimental attachment to it and have decided they would rather keep it than sell it for anything less than 75.Acollectorinitiallyoffers75. A collector initially offers 60, which the owner declines. Later, the collector increases their offer to $90, and the owner agrees to the sale. Based on this scenario, what is the owner's willingness to accept?

  • Comparing Seller Valuations

  • Seller's Decision Point

  • A seller's willingness to accept for a used bicycle is 100.Iftheysuccessfullysellthebicyclefor100. If they successfully sell the bicycle for 120, it demonstrates that their true willingness to accept was $120.

  • Match each seller's scenario to their correct Willingness to Accept (WTA), which is the minimum price they would agree to sell their item for.

  • Evaluating Seller Success

  • The absolute minimum price a seller requires to sell a good or service, below which they would prefer to keep the item, is known as their __________.

  • A student is selling a used graphing calculator. They have determined that the absolute minimum price they would sell it for is $50. Arrange the following events in the logical order they would occur for a successful transaction to take place from the seller's perspective.

  • Inferring Seller Valuation

  • An individual is selling a rare comic book. They have determined that the absolute minimum price they will part with it for is 500.Theyreceiveaninitialofferof500. They receive an initial offer of 450, which they immediately decline. A second potential buyer offers exactly 500.Afterconsideringtheoffer,theselleragreestothesale.Athirdbuyerthencontactsthesellerandoffers500. After considering the offer, the seller agrees to the sale. A third buyer then contacts the seller and offers 550, but the seller has already committed to the second buyer. Based on this information, what is the seller's willingness to accept?

Learn After
  • Constructing a Supply Curve from Willingness to Accept (WTA)

  • Linearity of Supply and Demand Curves as a Simplification

  • Three firms produce a specific type of widget. Firm X will offer 40 widgets for sale at any price of 8orhigher.FirmYwilloffer60widgetsforsaleatanypriceof8 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 14orhigher.Ifthemarketpriceforawidgetiscurrently14 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 250ormore.Seller2iswillingtoselltheirsfor250 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.

    PriceCycle Corp Quantity SuppliedBike Inc. Quantity Supplied
    $20050
    $300158
    $4002516

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

  • Inverse Supply Function

  • Deriving Market Supply by Aggregating Individual Firm Supplies