Suppose there are 100 identical firms in the rag industry,and each firm is willing to supply 10 rags at any price.The market supply curve will be a
A) vertical line where Q = 10.
B) vertical line where Q = 100.
C) vertical line where Q = 1000.
D) horizontal line where Q = 1000.

Question

Quizplus · Accepted Answer

Since each of the 100 firms supplies 10 rags, the total market supply is 100 firms * 10 rags/firm = 1000 rags. The supply curve is vertical at Q = 1000, indicating that the total quantity supplied to the market is fixed at 1000 rags, regardless of the price.

Suppose There Are 100 Identical Firms in the Rag Industry,and