Figure 411 Firm A price 20 18 16 20 18 l6 12 12 10 2 46 8 10

Figure 4-11 Firm A price 20 18 16 20 18 l6 12 12 10 2 46 8 10 12 14 16 18 20 uantity 2 4 6 8 10 12 14 16 aanty Refer to Figure 4-11. If these are the only two sellers in the market, then the market quantity supplied at a price of $8 is Select one: a. 29 units. b. 16 units. ? ?. 15 units. d. 14 units. Next page

Solution

Answer is a. 29 units.

Explanation:

The market supply is sum of individual supplies at various prices.

At price $8, supply of Firm A is 13 units and supply of Firm B is 16 units.

Hence. the market supply at price $8 is 29 units (i.e 13+16)