Table 7-14
-Refer to Table 7-14. You want to hire a professional photographer to take pictures of your family. The table shows the costs of the four potential sellers in the local photography market. Which of the following graphs represents the market supply curve?

Question

Table 7-14 
-Refer to Table 7-14. You want to hire a professional photographer to take pictures of your family. The table shows the costs of the four potential sellers in the local photography market. Which of the following graphs represents the market supply curve?

Quizplus · Accepted Answer

The market supply curve represents the total quantity of a product that all firms are willing to supply at each price level. In this table, the market supply curve would be the horizontal sum of the individual supply curves of the four potential sellers. As we can see, only graph C shows an upward-sloping curve that would be consistent with the horizontal sum of the individual supply curves. Graphs A and D show downward-sloping curves, and graph B shows a straight horizontal line, none of which are consistent with the market supply curve. Therefore, the best choice is C.

Table 7-14 -Refer to Table 7-14. You Want to Hire a Professional