Answer: Examining the connection between the volume supplied and the short-term market price is necessary to determine the short-run supply curve. The following is a general method for determining the short-run supply curve:
1-Choose a niche market to focus on, then list the companies that serve it. These businesses provide the good or service.
2-Discover the firms' cost structures. This includes elements that influence the firms' production choices, such as production costs, input costs, technological advancements, and others.
3-Examine the short-term production choices made by the companies. In the short term, businesses may have some fixed inputs that cannot be changed easily, such as capital equipment or factory space, while others, such as labor and raw materials, can be changed.
4-analyze the connection between the market price and the volume supplied by each firm. Businesses may be willing to produce more as the market price rises due to the possibility of greater profits.
5-To obtain the market supply curve, add the individual firm supply curves together. The total quantity supplied in the market at each price level can be calculated by adding the quantities supplied by each firm at various price points.
6-Place the price on the vertical axis of a graph and the quantity supplied on the horizontal axis to represent the market supply curve. The resulting curve illustrates the connection between short-term supply and demand and market price.
Step-by-step explanation: