Refer to the graph shown. Suppose that at a price of $5.00, firm A is willing and able to supply 4 units and firm B is willing and able to supply 4 units. Which of the following statements is then true?
A) Curve S0 shows the quantity supplied of firm A and firm B combined.
B) Curve S1 shows the quantity supplied of firm A and firm B combined.
C) The addition of firm B to the market causes a movement upward and to the right along S0.
D) The addition of firm B to the market causes a movement upward and to the right along S1.

Question

Refer to the graph shown. Suppose that at a price of $5.00, firm A is willing and able to supply 4 units and firm B is willing and able to supply 4 units. Which of the following statements is then true? 
A) Curve S0 shows the quantity supplied of firm A and firm B combined. 
B) Curve S1 shows the quantity supplied of firm A and firm B combined. 
C) The addition of firm B to the market causes a movement upward and to the right along S0. 
D) The addition of firm B to the market causes a movement upward and to the right along S1.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. Suppose that at a price of $5.00, firm A is willing and able to supply 4 units and firm B is willing and able to supply 4 units. Which of the following statements is then true? 
A) Curve S0 shows the quantity supplied of firm A and firm B combined. 
B) Curve S1 shows the quantity supplied of firm A and firm B combined. 
C) The addition of firm B to the market causes a movement upward and to the right along S0. 
D) The addition of firm B to the market causes a movement upward and to the right along S1.

Refer to the Graph Shown