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Supply and Elasticity of Supply


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Individual supply and market supply


Equations are omitted for technical reasons - download the original pdf

Just as the demand in a market results from adding together the demand curves of individuals, a market is supplied by individual firms. Each firm has a different supply curve - that is a relationship between the quantity the firm would seek to supply to a market at a given price. When these individual supply curves are added together, the result is the supply curve for the market (or industry, which here means the same thing as market). [Diagram goes here - download the original pdf to see it.] Individual and market supply curves. For simplicity we imagine an industry supplied by just three firms, X, Y and Z. When their individual supply curves are added horizontally, the result is the industry (market) supply curve.
Contents of
Supply and Elasticity of Supply

1 Supply, the supply curve
2 Individual supply and market supply
3 Factors influencing the conditions of supply
4 Elasticity of Supply
5 Factors affecting elasticity of supply
6 Profits and supply, the housing market as an example

Related articles: (1) Costing, (2) Supply and Elasticity of Supply