One point on a market supply curve represents $4 and 100 units quantity supplied.If there are three suppliers,and at a price of $4 one of the suppliers supplies 23 units,then which of the following combinations of price and quantity supplied might hold for the other two suppliers?
A) At $4,quantity supplied could be 40 units for one supplier and 27 for the other.
B) At $4,quantity supplied could be 33 units for one supplier and 27 for the other.
C) At $4,quantity supplied could be 40 units for one supplier and 37 for the other.
D) At $4,quantity supplied could be 77 units for one supplier and 10 for the other.
E) There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

If one supplier is supplying 23 units at a price of $4 and the total quantity supplied in the market is 100 units at that price, then the other two suppliers must be supplying the remaining 77 units. Option C satisfies this condition as one supplier is supplying 40 units and the other is supplying 37 units, together making 77 units. Therefore, option C is the correct answer. Option A and B do not add up to 77 units and option D adds up to 87 units, which exceeds the total market supply of 100 units.

One Point on a Market Supply Curve Represents $4 and 100