Suppose that there are only 2 firms in the market. Their supply curves are given as follows:
S1(p) = 0, if p < 10
S1(p) = p - 10, if p ≥ 10
S2(p) = 0, if p < 15
S2(p) = p - 15, if p ≥ 15
What will be the market supply at the price p = 20?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 15 units
Given:
p = 20
S1(p) = p − 10 for p ≥ 10
S2(p) = p − 15 for p ≥ 15
Market supply at a price is the sum of the supplies of all firms at that price.
S1(20) = 20 − 10 = 10 units
S2(20) = 20 − 15 = 5 units
Market supply = 10 + 5 = 15 units
NCERT (2026-27): “4.6 Market Supply Curve … 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.”
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