Suppose that Bob and Cho are the only suppliers of pizza slices in a particular market. The following table shows their weekly supply schedules: Price (Dollars per slice) 1 2 PRICE (Dollars per slice) 6 5 3 4 0 5 0 Bob's Quantity Supplied (Slices) 0 4 On the following graph, plot Bob's supply of pizza slices using the green points (triangle symbol). Next, plot Cho's supply of pizza slices using the purple points (diamond symbol). Finally, plot the market supply of pizza slices using the orange points (square symbol). 4 Note: Line segments will automatically connect the points. Remember to plot from left to right. 8 6 7 12 8 16 QUANTITY (Slices) Cho's Quantity Supplied (Slices) 5 20 9 12 14 15 24 Bob's Supply Cho's Supply O Market Supply
Demand for a particular commodity is influenced by its price as well as a number of other factors. T he relationship between various price levels and the maximum quantity that might possibly be purchased by consumers at each of those prices, with the exception of the commodity's price, which is frequently maintained constant. The price-quantity combinations can be shown on a demand curve, where the horizontal axis represents quantity and the vertical axis represents price. A demand curve usually slopes downward, demonstrating consumers desire to buy more of the good at lower prices.
The quantity of a commodity that is supplied to the market depends not only on the price that can be obtained for the commodity, but also on a number of other potential factors. Supply curve shows the relationship between different prices and the quantity that producers might offer at each price while holding constant all other potential price-influencing factors. These price-quantity combinations may be shown on a supply curve, where price would be represented on the vertical axis and quantity would be represented on the horizontal axis. The willingness of producers to sell more of the product they produce in a market with higher prices is typically reflected by an upward-sloping supply curve.
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