Question
There are three sellers A, B and C in a market. Their supply curves are given by the following equations.
qA=5p−30, p≥8qB=2p+20, p≥10qC=3p+10, p≥15
What is the total quantity supplied at a market price of Rs 10?
qA=5p−30, p≥8qB=2p+20, p≥10qC=3p+10, p≥15
What is the total quantity supplied at a market price of Rs 10?
Answer: Option B
:
B
Note that the supply curve of C starts only above a price level of 15. Hence, at a price of Rs 10, only the supply curves of B and C are relevant.
q=qA+qB⇒q=7p−10
At p=10, the quantity supplied is 60 units.
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:
B
Note that the supply curve of C starts only above a price level of 15. Hence, at a price of Rs 10, only the supply curves of B and C are relevant.
q=qA+qB⇒q=7p−10
At p=10, the quantity supplied is 60 units.
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