Table 4-5

-Refer to Table 4-5.If these are the only four sellers in the market,then when the price decreases from $10 to $8,the market quantity supplied decreases by

Question

Table 4-5
 
-Refer to Table 4-5.If these are the only four sellers in the market,then when the price decreases from $10 to $8,the market quantity supplied decreases by

Quizplus · Accepted Answer

To determine the change in market quantity supplied, we need to calculate the quantity supplied by each seller at both prices and then add them up.

At $10, seller 1 supplies 20 units, seller 2 supplies 30 units, seller 3 supplies 25 units, and seller 4 supplies 15 units. 
So, the market quantity supplied at $10 is 20 + 30 + 25 + 15 = 90 units.

At $8, seller 1 supplies 15 units, seller 2 supplies 25 units, seller 3 supplies 20 units, and seller 4 supplies 10 units. 
So, the market quantity supplied at $8 is 15 + 25 + 20 + 10 = 70 units.

The change in market quantity supplied is therefore 90 - 70 = 20 units. 
Therefore, the market quantity supplied decreases by 10 units when the price decreases from $10 to $8.

Table 4-5 -Refer to Table 4-5.If These Are the Only Four Sellers