The market supply curve can be derived by
A) vertically adding the individual supplies at each quantity level.
B) multiplying the price and quantity supplied at each price level.
C) horizontally adding the individual supplies at each price level.
D) looking at the capacity utilization in the largest firms in the industry.

Question

Quizplus · Accepted Answer

The market supply curve represents the total quantity of a good or service that suppliers are willing and able to offer for sale at different prices, so it is derived by horizontally adding up the individual supplies at each price level. This means that at any given price, the market supply is the sum of the quantities supplied by all firms in the industry. Therefore, choice C is the correct answer.

The Market Supply Curve Can Be Derived by