6. Individual and market supply Suppose that Paolo and Sharon are the only suppliers of ice cream cones in a particular market. The following table shows their monthly supply schedules: Price (Dollars per cone) 1 2 3 PRICE (Dollars per cone) N 0 4 0 5 On the following graph, plot Paolo's supply of ice cream cones using the green points (triangle symbol). Next, plot Sharon's supply of ice cream cones using the purple points (diamond symbol). Finally, plot the market supply of ice cream cones using the orange points (square symbol). ? 4 Paolo's Quantity Supplied Sharon's Quantity Supplied (Cones) (Cones) 0 5 9 12 8 4 12 6 7 8 10 QUANTITY (Cones) 20 24 Now, suppose that Sharon's twin brother, who has an identic another producer to this market. As a result, there will be a quantity supplied 14 15 A Paolo's Supply Sharon's Supply shift of P Market Supply movement along d ice cream cones supply curve as Sharon, moves to the area, adding the market supply curve because there will be a change in

6. Individual and market supply Suppose that Paolo and Sharon are the only suppliers of ice cream cones in a particular market. The following table shows their monthly supply schedules: Price (Dollars per cone) 1 2 3 PRICE (Dollars per cone) N 0 4 0 5 On the following graph, plot Paolo's supply of ice cream cones using the green points (triangle symbol). Next, plot Sharon's supply of ice cream cones using the purple points (diamond symbol). Finally, plot the market supply of ice cream cones using the orange points (square symbol). ? 4 Paolo's Quantity Supplied Sharon's Quantity Supplied (Cones) (Cones) 0 5 9 12 8 4 12 6 7 8 10 QUANTITY (Cones) 20 24 Now, suppose that Sharon's twin brother, who has an identic another producer to this market. As a result, there will be a quantity supplied 14 15 A Paolo's Supply Sharon's Supply shift of P Market Supply movement along d ice cream cones supply curve as Sharon, moves to the area, adding the market supply curve because there will be a change in

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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