Given the supply function S1= P-11,S2 = 2P-10,S3= 3P-9,find the market supply schedule and market supply curve?
The following is the supply schedule.
Price (Rs) | Quantity Supplied by Firm1 (S1) | Quantity Supplied by Firm2 (S2) | Quantity Supplied by Firm3 (S3) | Market Supply (Ms) |
15 | (15 – 11) = 4 | (2×15) – 10 = 20 | (3×15) – 9 = 36 | 4+20+36 = 60 |
20 | (20 – 11) = 9 | (2×20) – 10 = 30 | (3×20) – 9 = 51 | 9+30+51 = 90 |
25 | (25 – 11) = 14 | (2×25) – 10 = 40 | (3×25) – 9 = 66 | 14+40+66 = 120 |
The following is the market supply curve.