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Market supply is best defined as
- a)Vertical summation of all individual quantity supplied at a given price
- b)Horizontal summation of all individual quantity supplied at a given price
- c)Horizontal summation of all individual quantity supplied at various prices
- d)Vertical summation of all individual quantity supplied at various prices
Correct answer is option 'C'. Can you explain this answer?
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Market supply is best defined asa)Vertical summation of all individual...
A change in the price of resources inputs used to
produce the good. Supply is best
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Market supply is best defined asa)Vertical summation of all individual...
Market supply is best defined as the horizontal summation of all individual quantities supplied at various prices. This means that market supply represents the total quantity of a good or service that all suppliers are willing and able to offer for sale at different prices in a given market.
Understanding Market Supply:
The concept of market supply is derived from the individual supply of producers or sellers in a market. Each producer determines the quantity of a good or service they are willing to supply at different prices based on factors such as production costs, input prices, technology, and market conditions. The individual supply curves of all producers in the market are then aggregated to obtain the market supply curve.
Horizontal Summation of Individual Supply:
The horizontal summation of individual quantities supplied refers to adding up the quantities supplied by each individual producer at various prices. It involves aligning the different quantities supplied by each producer at each price and summing them horizontally to obtain the total quantity supplied in the market at that particular price.
For example, suppose there are three producers in a market, each with their own supply curve. Producer A is willing to supply 10 units at a price of $5, Producer B is willing to supply 15 units at the same price, and Producer C is willing to supply 20 units. When we horizontally sum these individual quantities supplied at $5, we get a total market supply of 45 units at that price.
Importance of Market Supply:
Understanding market supply is crucial for analyzing and predicting the behavior of suppliers in response to changes in market conditions. It helps determine the quantity of a good or service that will be available in the market at different price levels. This information is essential for businesses, policymakers, and economists in making production decisions, setting prices, and evaluating market equilibrium.
Conclusion:
In conclusion, market supply is the horizontal summation of all individual quantities supplied at various prices. It represents the total amount of a good or service that all suppliers are willing and able to offer for sale in a given market. By aggregating the individual supply curves of producers, we can determine the market supply curve, which provides valuable insights into the behavior of suppliers and the dynamics of the market.
Understanding Market Supply:
The concept of market supply is derived from the individual supply of producers or sellers in a market. Each producer determines the quantity of a good or service they are willing to supply at different prices based on factors such as production costs, input prices, technology, and market conditions. The individual supply curves of all producers in the market are then aggregated to obtain the market supply curve.
Horizontal Summation of Individual Supply:
The horizontal summation of individual quantities supplied refers to adding up the quantities supplied by each individual producer at various prices. It involves aligning the different quantities supplied by each producer at each price and summing them horizontally to obtain the total quantity supplied in the market at that particular price.
For example, suppose there are three producers in a market, each with their own supply curve. Producer A is willing to supply 10 units at a price of $5, Producer B is willing to supply 15 units at the same price, and Producer C is willing to supply 20 units. When we horizontally sum these individual quantities supplied at $5, we get a total market supply of 45 units at that price.
Importance of Market Supply:
Understanding market supply is crucial for analyzing and predicting the behavior of suppliers in response to changes in market conditions. It helps determine the quantity of a good or service that will be available in the market at different price levels. This information is essential for businesses, policymakers, and economists in making production decisions, setting prices, and evaluating market equilibrium.
Conclusion:
In conclusion, market supply is the horizontal summation of all individual quantities supplied at various prices. It represents the total amount of a good or service that all suppliers are willing and able to offer for sale in a given market. By aggregating the individual supply curves of producers, we can determine the market supply curve, which provides valuable insights into the behavior of suppliers and the dynamics of the market.
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Market supply is best defined asa)Vertical summation of all individual quantity supplied at a given priceb)Horizontal summation of all individual quantity supplied at a given pricec)Horizontal summation of all individual quantity supplied at various pricesd)Vertical summation of all individual quantity supplied at various pricesCorrect answer is option 'C'. Can you explain this answer?
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Market supply is best defined asa)Vertical summation of all individual quantity supplied at a given priceb)Horizontal summation of all individual quantity supplied at a given pricec)Horizontal summation of all individual quantity supplied at various pricesd)Vertical summation of all individual quantity supplied at various pricesCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Market supply is best defined asa)Vertical summation of all individual quantity supplied at a given priceb)Horizontal summation of all individual quantity supplied at a given pricec)Horizontal summation of all individual quantity supplied at various pricesd)Vertical summation of all individual quantity supplied at various pricesCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Market supply is best defined asa)Vertical summation of all individual quantity supplied at a given priceb)Horizontal summation of all individual quantity supplied at a given pricec)Horizontal summation of all individual quantity supplied at various pricesd)Vertical summation of all individual quantity supplied at various pricesCorrect answer is option 'C'. Can you explain this answer?.
Market supply is best defined asa)Vertical summation of all individual quantity supplied at a given priceb)Horizontal summation of all individual quantity supplied at a given pricec)Horizontal summation of all individual quantity supplied at various pricesd)Vertical summation of all individual quantity supplied at various pricesCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Market supply is best defined asa)Vertical summation of all individual quantity supplied at a given priceb)Horizontal summation of all individual quantity supplied at a given pricec)Horizontal summation of all individual quantity supplied at various pricesd)Vertical summation of all individual quantity supplied at various pricesCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Market supply is best defined asa)Vertical summation of all individual quantity supplied at a given priceb)Horizontal summation of all individual quantity supplied at a given pricec)Horizontal summation of all individual quantity supplied at various pricesd)Vertical summation of all individual quantity supplied at various pricesCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Market supply is best defined asa)Vertical summation of all individual quantity supplied at a given priceb)Horizontal summation of all individual quantity supplied at a given pricec)Horizontal summation of all individual quantity supplied at various pricesd)Vertical summation of all individual quantity supplied at various pricesCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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