The supply schedules of the only two firms in a market are given below:
| Price (Rs) | 4 | 6 | 8 | 10 |
|---|---|---|---|---|
| Supply of firm 1 (units) | 0 | 2 | 4 | 6 |
| Supply of firm 2 (units) | 0 | 0 | 3 | 6 |
What is the market supply at a price of Rs 8?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 7 units
Market supply at a price is the sum of what each firm supplies at that price.
At Rs 8: firm 1 supplies 4 units and firm 2 supplies 3 units.
Market supply = 4 + 3 = 7 units
NCERT (2026-27): “4.6 Market Supply Curve The market supply curve shows the output levels (plotted on the x-axis) that firms in the market produce in aggregate corresponding to different values of the market price (plotted on the y-axis). … Consider a market with n firms: firm 1, firm 2, firm 3, and so on. Suppose the market price is fixed at p. Then, the output produced by the n firms in aggregate is [supply of firm 1 at price p] + [supply of firm 2 at price p] + … + [supply of firm n at price p]. In other words, the market supply at price p is the summation of the supplies of individual firms at that price.” |