1
Question
Consider a market with two firms. In the following table, columns labelled as SS1 and SS2 give the supply schedules of firm 1 and firm 2 respectively. Compute the market supply schedule.
Price (Rs )
SS1 (kg)
SS2 (kg)
0
0
0
1
0
0
2
0
0
3
1
0
4
2
0.5
5
3
1
6
4
1.5
7
5
2
8
6
2.5
| Price (Rs ) | SS1 (kg) | SS2 (kg) |
| 0 | 0 | 0 |
| 1 | 0 | 0 |
| 2 | 0 | 0 |
| 3 | 1 | 0 |
| 4 | 2 | 0.5 |
| 5 | 3 | 1 |
| 6 | 4 | 1.5 |
| 7 | 5 | 2 |
| 8 | 6 | 2.5 |
Open in App
Solution
Price (Rs)
SS1 (kg)
SS2 (kg)
Market Supply = SS1 + SS2 (kg)
0
0
0
0 + 0 = 0
1
0
0
0 + 0 = 0
2
0
0
0 + 0 = 0
3
1
0
1 + 0 = 1
4
2
0.5
2 + 0.5 = 2.5
5
3
1
3 + 1 = 4
6
4
1.5
4 + 1.5 = 5.5
7
5
2
5 + 2 = 7
8
6
2.5
6 + 2.5 = 8.5
| Price (Rs) | SS1 (kg) | SS2 (kg) | Market Supply = SS1 + SS2 (kg) |
| 0 | 0 | 0 | 0 + 0 = 0 |
| 1 | 0 | 0 | 0 + 0 = 0 |
| 2 | 0 | 0 | 0 + 0 = 0 |
| 3 | 1 | 0 | 1 + 0 = 1 |
| 4 | 2 | 0.5 | 2 + 0.5 = 2.5 |
| 5 | 3 | 1 | 3 + 1 = 4 |
| 6 | 4 | 1.5 | 4 + 1.5 = 5.5 |
| 7 | 5 | 2 | 5 + 2 = 7 |
| 8 | 6 | 2.5 | 6 + 2.5 = 8.5 |
Suggest Corrections
1
Similar questions