Question

A market supply curve is determined by a. finding the average price at which sellers are willing and able to sell a particular quantity of the good. b. vertically summing individual supply curves. c. finding the average quantity supplied by sellers at each possible price. d. horizontally summing individual supply curves.

Answer 1

d. horizontally summing individual supply curves.

Step-by-step explanation:

Each firm will have its own supply curve depicting the relationship between the price and the quantity of goods it is willing to produce at that given price. The market supply curve is obtained by aggregating the different firm supply curves i.e. the total quantity suppliers are willing to produce when the product is sold for a given price.

Based on the above, option d is the correct answer.