If these are the only four sellers in the Mark, then the market quantity supplie
ID: 469261 • Letter: I
Question
If these are the only four sellers in the Mark, then the market quantity supplied at a price of $8 is H- 10 units. 20 units. 32 units. Suppose roses arc currently selling for S20 per dozen, but the actual equilibrium price of rose should be S30 per dozen. We would expect there to be shortage and the market price of roses should increase a shortage and the market price of roses should decrease. a surplus and the market price of roses should increase)) a surplus and the market price of roses should decrease.Explanation / Answer
42. The correct answer is 40 units. The market supply is calculated by horizontal addition of individual supply schedules of A,B,C and D.
43. The current price is lower than equilibrium price which means that there will be shortage of supply in the market. The firms will supply less at price lower than equilibrium price. The result will be that some demand will remain unsatisfied and consumers will compete to buy the product. In this process the consumers will be ready to pay more to get rose. The price of rose will rise until the quantity demanded becomes equal to the quantity supplied.
Price Quantity Supplied by Market Supply A B C D 0 0 0 0 0 0 2 3 4 2 1 10 4 6 8 4 2 20 6 9 12 6 3 30 8 12 16 8 4 40 10 15 20 10 5 50