Figure 4.6

David's Supply Schedule Celeste's Supply Schedule
-Refer to Figure 4.6, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, if the market quantity supplied is 50, the price must be

Question

Figure 4.6
  
David's Supply Schedule Celeste's Supply Schedule
-Refer to Figure 4.6, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, if the market quantity supplied is 50, the price must be

Quizplus · Accepted Answer

To determine the price when the market quantity supplied is 50, we need to find the point where David's and Celeste's supply curves intersect. From the graph, we can see that David's supply curve intersects the quantity axis at 40 and the price axis at $20. Celeste's supply curve intersects the quantity axis at 20 and the price axis at $10. Therefore, at a market quantity of 50, the total quantity supplied is split between David and Celeste as 40 and 10 respectively. The price is determined by the supply curve of the producer with the highest marginal cost, which is Celeste in this case. Therefore, the price must be between $10 and $20.

Figure 4.6 David's Supply Schedule Celeste's Supply Schedule