Question

Consider a market for a good that is comprised of two identical producers whose supply functions are P = 20 + 2Q. Given this information, the market supply function is:

Answer 1

The market supply function represents the combined supply of two identical producers in a market. To find the market supply function, the individual supply functions of the producers are added together. Solving the system of equations will give the equilibrium price and quantity in the market.

Step-by-step explanation:

The market supply function represents the combined supply of the two producers in the market. To find the market supply function, we add the individual supply functions of the two producers. Given that each producer's supply function is P = 20 + 2Q, we can substitute this into the market supply function equation.

Market supply function (Qs) = 2 + 5P

Now we have a system of equations where the market supply function (Qs) equals the quantity demanded (Qd). Solving the equations will give us the equilibrium price and quantity in the market.

Keywords: market supply function, supply function, quantity supplied, equilibrium price, equilibrium quantity.