To calculate market supply, we
A) Add the quantities supplied for each individual supply schedule horizontally.
B) Add the quantities supplied for each individual supply schedule vertically.
C) Find the average quantity supplied at each price.
D) Find the difference between the quantity supplied and the quantity demanded at each price. Market supply represents the combined supply quantities of all market participants.

Question

Quizplus · Accepted Answer

To calculate market supply, we need to add the quantities supplied by all individual suppliers at each price. Therefore, we add the quantities supplied for each individual supply schedule horizontally. This gives us the total quantity supplied at each price in the market, which represents the market supply curve. Option B is incorrect because adding the quantities supplied for each individual supply schedule vertically would give us the total quantity supplied by each individual supplier, not the market supply. Option C is incorrect because finding the average quantity supplied at each price does not give us the total quantity supplied in the market. Option D is incorrect because finding the difference between the quantity supplied and the quantity demanded at each price gives us the market equilibrium, not the market supply.

To Calculate Market Supply, We